Google Finance        Yahoo Finance       CNNMoney       Wall Street Journal       MarketWatch       BBC Business News       IB Times       GlobeInvestor

TheStrategyLab.com Price Action Only Strategies

Price Action Trading (no indicators)

The McGraw-Hill Companies ($MHP) S&P 500 Emini ES ($ES_F) Forex Currency EurUsd Energy Select Sector SPDR ($XLE)
Stocks Futures Forex Currencies Exchange Traded Funds
 
 

Home      Performance Record      WRB Analysis Tutorials      Trade Strategies      Support Forum      Sitemap

 

Bearish Engulfing Pattern

Japanese Candlestick Analysis

click here to post questions

Bearish Engulfing Japanese Candlestick PatternThe image to the left represents a generic image of a Bearish Engulfing Japanese Candlestick price action pattern and should only be used for definition purpose to differentiate this pattern from other generic Japanese Candlestick patterns. This price action pattern will form at the top of a trend as a reversal or warning of price contraction (will go sideways). In addition, the Bearish Engulfing Japanese Candlestick price action pattern can signal failed counter-thrusts (lower highs) or double tops.

Also, Japanese Candlestick patterns do not define the price action. Instead, you should have already defined the price action (understand the price action) prior to the appearance of any Japanese Candlestick patterns.

More Info about #FuturesTrades  Trader A identifies a bearish engulfing Japanese Candlestick pattern and concludes the price action must be bearish. Trader A then uses the bearish engulfing pattern trade signal as a trade entry strategy into the price action.

More Info about #FuturesTrades  Trader B identifies a price action and then determines it's bearish via a method not related to Japanese Candlestick analysis. In addition, trader B then identifies a bearish engulfing Japanese Candlestick pattern signal as a trade entry strategy into the bearish price action.

More Info about #FuturesTrades  Results: Statistically the bearish engulfing Japanese Candlestick price action pattern will be more profitable and more reliable for trader B in comparison to trader A. 

Here's some basic price action information for the generic Bearish Engulfing Japanese Candlestick price action pattern.

 Dark interval (open > close) will engulf the body of the prior interval...an interval that can be a white interval (close1 > open1) or a doji (close1 = open1). 

 There interaction is a open > close1 and close < open1 resulting in the engulfing price action.

 Price rising for several intervals prior to the white interval (close1 > open1) or doji (close1 = open1) and you can define "price rising" via whatever you want.

The generic Bearish Engulfing Japanese Candlestick price action pattern by itself is not reliable if used as explained in most typical Japanese Candlestick book or online discussions which is the exact same way that most system designers, programmers, backtesters or academia (researchers) approach their analysis of the pattern because the generic pattern is very simple to code. However, profitable traders of the Bearish Engulfing Japanese Candlestick price pattern do not use the generic version nor do they use this pattern all by itself with no other market inputs.

With that said, you can easily increase the reliability of this particular Japanese Candlestick pattern via merging the price action of the Bearish Engulfing Japanese Candlestick pattern with trading methods involving changes in supply/demand and changes in volatility such as our WRB Analysis Tutorials...a method that gives you the critical understanding of the price action called context prior to the appearance of any Japanese Candlestick patterns for trading.

 WRB interval must be the interval that's engulfing or is the interval before the interval that's being engulfed.

 WRB interval is only via the WRB Analysis Tutorials.

 Generic Bearish Engulfing candlestick pattern must occur within a WRB Zone...a WRB Zone described in the WRB Analysis Tutorials.

Note: WRB Analysis Tutorials can be applied to bar charts, constant tick charts, volume based charts or candlestick charts.

Further, if you want to increase the reliability more, we highly recommend you replace the generic Bearish Engulfing candlestick price pattern and use our advance custom Japanese Candlestick price action pattern strategies via the Advance Japanese Candlestick Trading Report (AJCTR). However, the WRB Analysis Tutorials all by itself will help you understand the price action you're trading and that will result in a better understanding of the Bearish Engulfing candlestick pattern as in occurs within the context of WRB Analysis. Yet, the AJCTR trade strategies will give you a more reliable trade management after entry that includes stop/loss management, trailing stops profit targets and exit signal. In addition via the AJCTR, we provide support for those that need helping in designing their own custom designed Bearish Engulfing Japanese Candlestick price action patterns merged with WRB Analysis.

Forex Currency EurUsd - Bearish Engulfing Japanese Candlestick Pattern
click on image to view actual size

The chart represents an image of an actual trade (real money or simulator) that was taken by one of our fee-based clients that uses WRB Analysis for generic Bearish Engulfing patterns and advance custom Bearish Engulfing patterns from our Advance Japanese Candlestick Trading Report (AJCTR). Therefore, WRB Analysis improves the performance of any generic Japanese Candlestick pattern you'll see in books or online discussion. In addition, WRB Analysis is a requirement for the advance custom Japanese Candlestick patterns in our Advance Japanese Candlestick Trading Report (AJCTR) as shown in the chart.

Also, if you want an explanation of the annotations key change in supply/demand, wrb s/r zones and pt levels...join our TSL Support Forum and ask questions. Our reply will contain useful trading tips about the Bearish Engulfing Japanese Candlestick pattern regardless if you purchase our WRB Analysis Tutorials or our Advance Japanese Candlestick Trading Report (AJCTR)

Free 30 Days Trial

Do you want to improve the performance of your Bearish Engulfing pattern entry signals, exit signals, profit targets and know when a big price move is about to occur along with a better understanding of the price action you're trading via learning more about wide range body, wide range bar or expansion bar?

Of course you do and that's why we invite you to download our free study guide WRB Analysis Tutorial chapters 1, 2 and 3 so that you can improve your trading performance in comparison to your trading prior to the WRB Analysis Tutorials...

Just like most of our clients discovered it was the missing piece of the puzzle to improving their trading and understanding of the price action regardless if you trade generic Japanese Candlestick patterns or advance Japanese Candlestick patterns from our AJCTR via the WRB Analysis Tutorials.

For more information about the free study guide...click here.
     

Basic Generic Patterns (no trade management)

 

Advance Custom Patterns with WRB Analysis

No Trade Management

 

Trade Management from Entry to Exit

       
Popular Japanese Candlestick Books

Japanese Candlestick Charting Techniques

Candlestick Charting Explained

Beyond Candlesticks

Trading Applications of Japanese Candlestick Charting

 

Advance Japanese Candlestick Trading Report (AJCTR)

These strategies exploit repetitive price action that's explain in depth from entry to exit via 75 pages of profitable trading via Japanese Candlestick pattern recognition.

AJCTR is applicable for day trading, swing trading and position trading and is about 75 pages.

     
Discussion Forum
   
     

Understanding Basic Japanese Candlestick Patterns

 

 

     

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis or wide range bar analysis)
Price Action Only Trading (no technical indicators)  
Twitter @ wrbtrader@ http://twitter.com/wrbtrader/

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com

"Once a trend starts, the odds are that it will continue. Every student of science or engineering will recognize that this is nothing more than Newton's First Law of Motion, which says, Every body continues in a state of rest or of uniform motion in a straight line unless it is compelled to change that state by forces applied to it. Simply said, it is easier for a market to continue its direction than to reverse its direction." --Gregory L. Morris

Amazon Computers & Accessories for Traders

Volatility          Supply Demand          Support Resistance          Scalping          Day Trading          Swing Trading          Position Trading          GAP Trading

 

Go HereMore Testimonials

 
  YM, Tbonds, FDAX and ER2 Testimonial"I tested it on YM, Tbonds, FDAX, ER2. It's reliable on what I trade and I will be purchasing your swing trading report soon."   Trader Recommendation"In all fairness...I give credit to these results to Niha and what I have learned from him."   Trader Recommendation"Your material is exceptional, its REVOLUTIONARY, seriously."  
 

Read Entire Testiomonial read entire context

 

Read Entire Testiomonial read entire context

 

Read Entire Testiomonial read entire context

 
 

DAX   FTSE100   CAC40   EuroFX   EC   HSI   MHI   NIFTY   EMD   TF   ES   NQ   YM  

 

Resources Used by TheStrategyLab.com

 

Market News

Blogs

Twitter

Miscellaneous

 
 
CNNMoney.com Business News Network
Wall Street Journal Globe Investor
MarketWatch Forbes
BBC Business News Fox Business
Financial Times Youtube Bloomberg
Bloomberg IB Times Global Markets
CNBC Market News  
   
   
Daily Finance Planet Money
Traderfeed  
ES EC Futures  
BloggingStocks  
Carl Futia  
xTrends  
   
   
   
Twitter Chart.ly
  TweetDeck
  StockTwits
  ReTweet
  Twitgraph
  GroupTweet
   
   
   
Time Dshort
Fidweek Econoday Economist
FED Calendar Financial Sense
Index Universe  
Wikipedia  
Forex Calendar  
   
   
   
 

 

VXX   QQQQ   SPY   IWM   DIA   CL   QM   Brent   OIH   XLE   GC   GLD   ZN   ZB   ZF   BUND   EurUsd   UsdCdn

 

TheStrategyLab.com

  Website Use Policies Fee-Based Strategies Performance Records Affiliations and Sponsor
  Disclaimer Applicable Trading Instruments M.A. Perry Performance Traders Library
  Privacy WRB Analysis Tutorials (Premium) Recent Trade History Traders Invest-Store
  Anti-Spam Policy Volatility Trading Report (VTR) Trading Record Archives Amazon
  Copyright Protection Swing Trading Report (STR)   Systweak
  Refund Policy Advance Price Action Only Report (APAOR)   Traders Accounting
  Referral Program Advance Japanese Candlestick Trading Report (AJCTR)   Slysoft
    Product Comparison   PayPal
    Mentorship Program    
    Discount Promotions    
         
  Who We Are & Contact Free Resources Miscellaneous Resources  
  About Us TSL Support Forum and Chat Room Forum List  
  Twitter @wrbtrader WRB Analysis Tutorials 30 Day Free Trial Sitemap  
  Stocktwits @wrbtrader #FuturesTrades Forum and Chat Room    
  delicious bookmarks Blogs    
  Youtube Favorite Music Twitters    
  TSL Support Forum Profile Basic Japanese Candlestick Patterns    
  EliteTrader Profile Trading Tips    
  Traderslaboratory Profile Trader Consultation    
  Frequently Asked Questions      
  Accolades (Testimonials)      
  Contact      
  Feedback      
         

 

Return to Top

 

anti-spam policy

Copyright 2002 - 2011. The Strategy Lab. All rights reserved.