Federik
By the first one working out for you, does it mean u went long on the engulf? If yes, then I would say it was pure luck.
yes, that’s correct I went long, thought it was a nice looking reversal pattern. I understand now that this pattern is not valid because even though the bullish candle does engulfe the entire body of the bearish candle, it does not engulf the entire bearish candle with the wicks included, correct?
best
Fredriik
Hi Fredrik,
Please, if you can, post the charts of what happened… It’s not so useful to get just a yes/no, if we cannot understand why [I]yes[/I] and why [I]no[/I].
Bye
I have just joined. I thought that " The Joy of Candlestick Trading Part II " was a book or video. Would someone please enlighten me. If it is a book or video, how can I get hold of a copy and also " Part 1 " as well. Thanks, Michael Goldstone
sorry for big image.
cheers!
Vicky I’m wondering why you would say that going long on a “bullish” engulfing pattern on the lower bollinger band would be luck? Unless you don’t consider the pattern a legitimate one because of the wick.
And Mister eddman I hope that you are scanning all the time frame’s from 20M to 1H on a couple of pairs because these pattern’s form on all time frame’s. Also when they are caught on the earlier time frame’s, they can be very profitable and the stop’s usually aren’t that far away. Although on the earlier time frame’s I probably would mainly rely on the 3 Candle patterns as they show more determination in a reversal. I was just noticing that all these pattern’s were all on the 1H Chart’s.
please post some charts with examples of good 3 candle patters you have traded on, it would help newbies as myself out a lot.
Fredrik
[B]The correct trading procedure for these would be as follows…[/B]
- Yes - mid BB is not going down and with the long engulfing, a signal to trade long.
Very reliable.
[U]Note[/U] - If the real body of the second candle totally engulfs the real body of the first, then we do not need to pay much attention to the wicks.
-
No - BB going down rapidly is the first thing you see.
The candle pattern is a non pattern!! -
No - the pattern is not on the lower BB where it should be.
Although the result was a success, it could easilly not have been, with room for the price action to go downwards to the lower BB.
In this case we play it safe. -
No - again the mid BB is going down rapidly and it is but a pious hope that the price action would go up against this trend and the expanding BB.
Further, morning stars do not have the great reliability the morning doji stars have.
This pattern is more like a plain morning star.
Finally, a great thank you to Eddman for posting these exercises and posting the results!! 
I will leave you, Eddman to do more of this.
I will confine myself to posting whole live trades so that you can learn the tactics of the Advanced level.
Do not apologise for the big image.
It is great!!
No, not pure luck.
The mid BB is clearly level and reinforced by a definite long pattern.
The engulfing pattern is also one of the strongest patterns.
These 2 factors make this a very high probability long trade.
Welcome here Michael!!
These threads are just that - threads for reading and posting.
They are not videos or books.
Rather than reading part 1, instead read the following…
I will be doing this again shortly to show how to do a successful candle trade live.
I can’t seem to access the 1st thread anymore… Whenever I clicked on the link, I only see blank page…
http://forums.babypips.com/newbie-island/10812-joy-candlestick-trading-learning-experience.html
Just wondering, anyone experiencing the same?
Works fine for me… I’m not sure what would cause that to happen. 
Phil : Thanks… I tried for several days from my favourite link and it didn’t work… copy n paste to my URL also didn’t work… All of a sudden, I clicked on the link again here and it works!
hmm… anyways…Thanks again. I shall resume reading + digesting… 
Doc, the wick was the precise reason I would say it was luck. The candle only engulf, might work once and then the next it might not. But, then that was my point of view.
We need some specific ground rules as to what is an engulf and what is not.Cause,this engulf without wick and with wick thing is confusing me. I thought engulf means the whole left candle is overshadowed by the right one.
Tymen
Agreed to the mid-bb being level and the possibility of a long trade but then I have 2 questions:
- What is an engulf? Does it paramount to just real bodies and not wick ? Cause here you have marked a wrong and a right engulf.
301 Moved Permanently
2.I am going by this post and looking at the widening extreme BB.
It appears that you are very confused as to what constitutes an engulfing pattern.
So here I will clarify.
[B][U]PART 1[/U][/B] (part 2 next post)
First you must go to…
Japanese Candlestick Charting Explained
go to all [U]bearish patterns[/U] and look up the [U]engulfing pattern[/U] and also the [U]dark cloud cover.[/U]
[B]We now look at a short engulfing pattern…[/B]
Note that the 2nd real body can only [U]be longer at the bottom[/U].
(If the 2nd pattern is longer at both ends (rare) we need look no further.)
If we now see the 2nd real body longer at the bottom then we have another requirement.
The 2nd candle upper wick must be longer higher 1st candle upper wick.
The reasons for this are given in the description of FX vs equity in the [U]dark cloud cover section.[/U]
[B]So in summary…[/B]
[U]A short engulfing pattern has…[/U]
-
A longer 2nd candle real body at the bottom.
-
A higher 2nd candle wick at the top.
[B][U]PART 2[/U][/B]
We go again to…
Japanese Candlestick Charting Explained
go to all [U]bullish patterns[/U] and look up the [U]engulfing pattern[/U] and also the [U]piercing pattern.[/U]
[B]We now look at a long engulfing pattern…[/B]
Note that the 2nd real body can only be [U]longer at the top.[/U]
(If the 2nd pattern is longer at both ends (rare) we need look no further.)
If we now see the 2nd real body longer at the top then we have another requirement.
The 2nd candle lower wick must be lower than the 1st candle lower wick.
The reasons for this are given in the description of FX vs equity in the [U]pirecing pattern section.[/U]
[B]So in summary…[/B]
[U]A long engulfing pattern has…[/U]
-
A longer 2nd candle real body at the top.
-
A lower 2nd candle wick at the bottom.
Hope this helps.
