The Only Candlestick Pattern I Would Use If I Had To Start Over Trading... (Insanely Effective)

"I'm about a thousand dollars on this trade or around a two to one reward to risk ratio"

"So with those three technical factors in place I knew I was just waiting on a Candlestick pattern That Candlestick pattern happened and was this engulfing pattern right here as you can see follows the rules of our bullish engulfing pattern we have a big green body candle that's got a bigger body than the previous red candle making this a valid engulfing pattern and the reason I decided to actually press the buy button on on this specific trade"

"So for a bearish version of this it's completely the opposite we need the body of this candle to be larger than the body of the previous candle we need a color change from green to red and as long as we have those two things despite what the Wicks look like we don't even need to focus on wicks for this Candlestick pattern because they do not matter"

"and if we have a red candle followed by a green candle that has a larger body then that red candle then we have a bullish engulfing pattern"

"So what I want to do now is explain this entire trade and explain the full way that I use engulfing Candlestick patterns in order to actually pull profits out of the market let's go ahead and get started so when trading Candlestick patterns I never trade them without three other technical confluences"

"So Factor number one was that we're in an uptrend with room to the upside if I place a trade Factor number two was that I wanted price to come down to a level of major structure that had been tested multiple times I call these otzs or optimal trading zones so we have Trend we have price in an otz or optimal Trading Zone that's when I want to drop down to a trading time frame like the four hour chart which is what I use"

"and on the four hour chart I ended up seeing the RSI indicator going oversold while in my zone so what we had was the daily Trend going up we had a daily level of major structure in that otz I just showed you and on the four hour chart we had prices going into an oversold RSI situation"

"it plays out over a long span of time when we have a Candlestick pattern combined with three other technical factors that doesn't mean we're gonna win every single trade we're absolutely not I don't win every single trade but what this does is creates an edge that plays out over a large sample size of Trades which gives me the ability to be profitable over a long span of time"

"So here's what I want you to try in conclusion on this video I want you to try only trading this in a demo account by the way if you're brand new to trading or still struggling as a Trader you don't need to be trading with live money anyway so this needs to be tried in a demo account if you're new try this while you're learning about Pips leverage while you're learning about stop losses while you're learning about risk management and trading psychology"

"and by the way we have a completely free basic scores that goes over all that it's linked in the description or you can go to the web address you see on the screen right now but while you're learning all of those things take what you just learned about engulfing candles and use either those three technical factors or choose your own but use three different technical factors in Confluence with a Candlestick pattern for entry and do that on a demo account while you learn and see what the outcome is not over one trade not in one week see what the outcome is over a large span of time it'll probably take you one to three months to learn the basics of Forex and to have them mastered while you're doing that just trade this on a demo account out and see what it comes up with"

"I normally put my stop loss below the engulfing candle somewhere that makes sense in this case it made sense to put it below the entire Zone because I could still get a decent reward to risk ratio doing that"

"and for targets I normally set a Target at about a one to a 1.4 to 1 reward risk ratio and if I want to manage the position I move my stop to break even once that one to one or one point four to one is hit"

"so even having a full strategy like that is only about a third of the puzzle that you need in order to be a professional Trader so the rest of that puzzle or triangle looks a little something like this I call this the triangle trading success everyone making money is in the middle of this triangle and they've mastered three skills that is a strategy that makes the money over time that's proven to be profitable that is a risk management plan that keeps them from blowing their account losing too much money and becoming super emotional and that is the trading psychology that keeps them from switching strategies from moving their stop up and down that keeps them in an emotionally clear State while they're trading and you must master all three of these if you ever have hopes of making money consistently as a Trader"