This pattern is strongly bullish if it occurs after a significant downtrend (i.e., it acts as a reversal pattern). It occurs when a small bearish (filled-in) Candle is
engulfed by a large bullish (empty) Candle.
This pattern is made of two consecutive candlesticks. The word engulfing signifies that the body of second candlestick has engulfed the first candlestick.
Two things clearly visible in this pattern are
1> First Candlestick is small in size while the second one is big in size.
2> Fist Candlestick is black while second one is white.
Can you guess what does this means? Yes, price in second candlestick has gone below the low of first candlestick & yet has come up and finished well above first candlesticks High. This is Bullish signal.
Candlestick Chart Patterns
Candlestick Patterns Long White Candle
Candlestick Patterns Long Black Candle
Candlestick Patterns Hammer
Candlestick Patterns Piercing Pattern
Candlestick Patterns Bullish Engulfing Pattern
Candlestick Patterns Morning Star
Candlestick Patterns Bullish Doji Star
Candlestick Patterns Hanging Man
Candlestick Patterns Dark cloud cover
Candlestick Patterns Bearish Engulfing Pattern
Candlestick Patterns Evening star
Candlestick Patterns Doji Star
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Candlestick Patterns Bullish Engulfing Pattern
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