How to Trade Engulfing Candle Bars

So you have watched the video on trading pin bars, so what is next? The nest aspect to look at would be to see how to trade engulfing bars as well. That way when you trade you can be very versatile on entry without being limiting to only one way.

Engulfing bars gives that second option, because sometimes pin bars do not form however these show what the market is doing as well.

To trade Engulfing candles effectively what one wants to do is similar to trading pin bars, look at them at key areas of support and resistance. Then when you trade trade them look for which direction they are pointing and whether they are suitable to trade. Some key aspects to watch are making sure the candle is at least bigger than previous few candles. This is a important note, because if it is similar or small to the previous bars then that means that the market is fighting and not creating confluence to what you want to see. So make sure it is big, the bigger the better. Then enter after in the direction this bar is heading.

engulfing candle bars

When trading it, put your stop loss below the bar as well, that way if for some reason you are wrong then you want to get out.

I prefer to trade off the higher time frames, however this form of trading can be used on most time frames, ranging from the 5 minute or higher, however be aware to check the bias of the market on the higher time frames before beginning your session.

Like i mentioned before, the key to using this method and doing it well is knowing the strong areas on the chart. If you have any questions on this method then please comment your thoughts on it below.

About Timon Weller

Timon Weller is the professional Trader behind the blog Forex Reviews as well as a Teacher of Price Action Trading and creator of the popular Training Series teaching people how to trade Price Action effectively called The Engulfing Trader. For other Forex Training available here at Forex Reviews click here.

For more on Timon Weller Click Here. To Learn more about How to Trade the Market and get updates Click Here.


  1. Hey TImon,

    Hope all is well buddy and you are enjoying your sunny Xmas day 🙂
    I wanted to ask you something, I have been reading a bit more about engulfing bars and needed some info..

    In your opinion do you believe the engulfing should be larger than the previous bars high and lows or is it just as powerful if it only engulfs the body. Would you trade an engulfing bar if at the resistance or support , if it didn’t engulf the full candle ( incl. high and lows)

    I am trying to get the best possible trade so you advice on this would be appreciated.

    Thanks buddy

    Chris from foggy England


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