NASDAQ 100 E-mini Futures
Education

How to Use Engulfing Candles in TradingView

46
Engulfing patterns are among the most powerful candlestick formations because they signal strong momentum shifts and can help you spot dramatic trend reversal opportunities.

What You'll Learn:
• How to identify valid engulfing formations where one candle completely covers another's body
• The two types: bullish engulfing (green candle engulfs red) and bearish engulfing (red candle engulfs green)
• Psychology behind engulfing patterns: when one side completely overwhelms the other
• Using volume analysis to confirm engulfing pattern validity
• Finding meaningful engulfing patterns at trend highs and lows for reversal setups
• Timeframe considerations for engulfing analysis on any chart period
• Step-by-step trading strategy for engulfing reversal setups
• Setting proper stop losses above engulfing candle highs
• Determining profit targets below engulfing candle lows
• Managing wide-range drawdowns common with strong momentum shifts
• Advanced entry technique: waiting for retracements to improve risk-reward ratios

This tutorial may help futures traders and technical analysts who want to use powerful candlestick patterns to identify significant momentum changes.

The strategies covered could assist you in creating effective reversal setups when strong buying or selling pressure appears at key price levels.

Learn more about futures trading with Tradingview: optimusfutures.com/Platforms/TradingView.php

Disclaimer:
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results. Please trade only with risk capital. We are not responsible for any third-party links, comments, or content shared on TradingView. Any opinions, links, or messages posted by users on TradingView do not represent our views or recommendations. Please exercise your own judgment and due diligence when engaging with any external content or user commentary.
This video represents the opinion of Optimus Futures and is intended for educational purposes only. Chart interpretations are presented solely to illustrate objective technical concepts and should not be viewed as predictive of future market behavior. In our opinion, charts are analytical tools—not forecasting instruments. Market conditions are constantly evolving, and all trading decisions should be made independently, with careful consideration of individual risk tolerance and financial objectives.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.