Engulfing Candlestick Binary Options Strategy

A form advanced binary options candlestick strategy is the engulfing binary options candlestick strategy. With the help of this strategy, traders will have the possibility to predict the movement of assets with a fairly large accuracy. After this they will be able to make the most accurate prediction on a binary options contract.

The engulfing candlestick binary options strategy is advanced in our opinion because it takes into consideration two candlesticks rather than just one as it’s in the case of doji candlesticks and pinbar candlesticks. Therefore, it is recommended to traders who already have an idea how candlestick technical analysis works.

winning binary options with engulfing candlesticks

Essentially, this strategy will enable traders to predict when a trend will change. By this we mean a reversal in the increase or decrease of the value of the asset. As you can see, being able to predict something like this can greatly influence your winning odds. Watch the video below and read the rest of the article on how to use this strategy.


How to use?

This strategy requires you to carefully watch the development of the candlesticks on a charting platform. Here, you will have to watch out for two candlesticks, which are side by side and fulfill the following conditions:

- The second candlestick moves into the opposite direction than the first one – The second candlestick is much larger than the first one

This strategy is called engulfing candlestick strategy because the second candlestick is “engulfing” the first one by being larger in the direction in which the second candlestick is moving. There are two kinds of candlesticks of this kind, which you can find below.

Bullish engulfing candlesticks

A bullish candlestick is an engulfing candle pattern where the first candlestick in the pattern is red while the second is green and larger than the red in the upper direction.

If you see a pattern like this, the following will happen:

- The value of the asset will most likely increase from now on continually.

This is because the candlestick pattern denotes that a large number of traders have decided to buy the asset, meaning that it the value of the asset will increase shortly. This is shown by the fact that the green candle is larger than the red one, meaning that more traders are now buying than traders who were selling before (as shown by the red candlestick).

So, in this situation you should buy a binary options contract that predicts that the value of the asset will go up in the future. You can also buy one that predicts that the value of the asset will go down and bet against this prediction.

winning binary options with bullish engulfing candlesticks

Bearish engulfing candlesticks

The second engulfing candlestick is when the first candle in the pattern is green while the second is red. The second candle is also larger than the first one at the bottom of the two sticks.

If you see one of these patterns, then the following will happen:

- The value of the asset will highly likely decrease continually from now on.

The reason for this is that the second red candle denotes than a very large number of traders have decided to suddenly sell the asset, leading to a reduction in price. The number of sellers is now also larger than the number of previous buyers.

winning binary options with bearish engulfing candlesticks

What Kind of Predictions Can you Make?

Now you might be wondering what kind of predictions you can make using engulfing candlesticks in binary options. As you could have read above, there are basically two candlesticks of this kind, so there are two scenarios. Below you find an example on both of them.

Bullish engulfing candlestick example

Imagine the following situation:

- You notice that the value of an asset was continually decreasing for the past few hours – Now you notice that the latest candle is a green candlestick that’s larger on the upper side than the preceding red candlestick.

In this situation you conclude the following:

- The value of the asset will most likely begin to increase in the future.

As such, you have two choices. The first one is to buy a binary options contract that predicts that the value of the asset will indeed increase. The second choice is to buy a contract that predicts that the value of the asset will decrease and bet against this prediction.

Bearish engulfing candlestick example

Imagine the following:

- The value of an asset was continually increasing the past few hours – Now you notice that the newest candlestick is a red one and its lower side is much larger than the lower side of the green one

Now, you will highly likely now that the following will happen:

- The value of the asset will most likely decrease in the future and will keep decreasing for a while.

Here, again you will have two choices to make. The first is to buy an option that predicts that the value of the asset will decrease. However, you may as well buy an option that predicts that the value of an asset will increase and bet against this prediction.

And it’s actually really this easy.

How accurate is it?

Now, the obvious question is how accurate this method actually is in binary options. The engulfing candlestick binary options strategy is not one of the most popular strategies, mainly because it involves two candlesticks instead of just one.

However, it can generate substantial winning rates of above 85%. This means that using this strategy, traders will be able to generate profits all the time, no matter what. The engulfing candlestick strategy works bets with the combination of other strategies.

If you know other strategies too, then you will be able to discover much more patterns and win much more than usual. This is essential if you want to win a lot because engulfing patterns are the least frequent patterns in financial trading.

So, feel free to check out our additional pages and articles that deal with other binary options candlestick strategies such as the pinbar candlestick strategy and the doji candlestick strategy.


Master just a few of our binary options strategies by practicing them on a binary options demo account from one of the best binary options brokers and you will be successful. Your binary options account will grow and you will earn a substantial income as long as you follow the winning binary options strategies correctly. These are some of the best binary options winning strategies on the internet. 

Binary options trading can be extremely rewarding to those traders who understand the Engulfing Candlestick binary options strategy and are able to make the right choices. Winning binary options soon becomes easier. In fact, by using binary options strategies it’s possible to increase one’s winning ratio and generate substantial profits. Elite Trading wishes you lots of success in your trading.