All language subtitles for 3. Bearish and Bullish Engulfing Patterns

Hello and welcome, guys, to the next lecture where I will introduce bearish engulfing and bullish
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engulfing candlestick patterns to you.
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Unlike shooting star and hammer, engulfing patterns consist of two candles where second candle engulfs
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the real body of the first candle in the pattern.
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A bearish engulfing pattern is the sign of bearish sentiment as the real body of the second candle in
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this pattern engulfs the real body of the first bullish candle.
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Similarly, a bullish engulfing pattern indicates buying strength and thus bullish sentiment as the
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bullish candle engulfs the entire real body of the first bearish candle.
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Now, let's understand these patterns using illustrations.
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Bearish engulfing pattern signals the selling strength in the prevailing market as buying strength weakens,
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which is reflected in the strong, bearish candle.
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Sellers are overcome by buyers, and the second candle in a bullish engulfing pattern reflects this
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price action.
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As you see here, both candidates must be of opposite color to validate the pattern.
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Please note that it is always the second candle which engulfs the real body of the first candle.
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At the same time, it is not necessary that the tails or wicks of the first candle to be engulfed.
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Guys for both engulfing patterns, you will always analyze them while keeping the below guidelines in mind
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to filter high profit versus low profit opportunities when these patterns appear:
1. whether bullish
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or bearish engulfing patterns appeared after a clear uptrend or downtrend.
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This means that the importance of the pattern increases when they appear after a clearly defined trends
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in the market.
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Whether these patterns are also associated to key support and resistance zones on your trading charts.
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If this happens, you are able to trade these patterns with increased confidence.
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Now that you've understood these two patterns, let's study them further through some real examples.
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Guys, here in the first example, we are analyzing daily charts of silver to study a
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bearish engulfing pattern.
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The first pattern appeared after an uptrend lasting for approximately 20 trading days, hence making
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this pattern very significant.
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Also notice candles of opposite colors in this pattern, and then price declined sharply over the next
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couple of weeks of trading.
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Similarly, another bearish engulfing pattern appeared on Silver after 30 trading days and at the
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same resistance zone.
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Notice, guys, the large bearish scandal indicating the large selling here and then price plummeted
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in a sharp downtrend following this pattern before it came to a halt at a key support.
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This is also very interesting and recent price activity on a daily chart of gold, the first bearish
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engulfing pattern was at a resistance zone and gold price continued declining for more than
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10 trading days.
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And then once price reached the key support zone, a bullish engulfing pattern appeared, signaling
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buyers entering in larger numbers at the support level.
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Another bullish engulfing pattern brought back the strong bearish sentiment in the market, hence offering
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another strong sell opportunity.
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This is what I have been teaching you throughout the course that the candlestick patterns dictate a story
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around these zones.
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Moving on to the next example, we're looking at GBPJPY forex chart.
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Once again, this bullish engulfing pattern came at a key resistance on a clear downtrend for almost
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15 days,
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Also ensure that the sellers are losing control of price at resistance zone.
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And finally, Price rallied in an uptrend.
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The final example in this lecture is of GBPCHF
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The criteria remains the same as this zone was seen at a key resistance zone and large bullish candle engulfing
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the real body of the bearish candle, indicating the large buying entering the market.
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Guys, this also concludes this lecture, and I will see you in the next lecture.
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where we continue studying other key candlestick patterns I use in this strategy.