When
price in a down trend, and a bullish candlestick forms after a bearish
candlestick which open price is lower than previous bearish candle and
closing price is higher, you got a bullish candlestick patterns. Bullish engulfing candlestick pattern formation indicates strong signal for a reversal. When price in a down trend, then if a bullish engulfing candlestick formation comes, You may expect price will make a reversal. The price may be bullish for next some period.
Bullish Engulfing pattern gives strong trading idea the traders who actually trade with price action. However, it is good for all trader to recognize them well in a chart when they appear. If you can identify them in your chart,you will get a trading idea. Candlestick patterns always interpret the market well than any other charting system.
Take a look on above picture. You will be noticed that There is a bullish engulfing pattern. After this pattern formation, price was up for some periods.
- Candlestick Basic(You have to know)
- How to read a candlestick chart?
- Bearish Engulfing
- Bullish Engulfing
- Doji
- Evening star
- Morning star
- Dark cloud cover
- Hammer
- Hanging Man
- Harami
- Inverted Hammer
- Piercing Pattern
- Shooting star
- Tweezers Top
- Tweezers Bottom
- Windows
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