Doji and engulfing patterns: do you actually trade them?

The doji signals indecision; the engulfing pattern signals a reversal attempt. Both are famous, both are everywhere on charts, and both fail constantly without context. Beginners learn the shapes before they learn the conditions.

Doji and engulfing patterns: do you actually trade them? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

Do you trade candle patterns?

Doji and engulfing patterns: do you actually trade them? — risk-reward diagram
A risk-reward ratio of 1 to 2
  • which one, and what context you require
  • how often it fails for you
  • what you'd tell a beginner about patterns

The candlestick guide puts the patterns in proper context.

Comments

Log in to join the discussion. Comments follow the community guidelines.

Log in to comment

Loading comments…