Bullish engulfing & Bearish engulfing
Bullish Engulfing
Bullish Engulfing is a 2-candlestick pattern, appearing in a downtrend, the trend signal can reverse into an uptrend.
Bullish Engulfing Identification:
The first candle is a bearish candle.
The second candle is a bullish candle.
The body of the second candle completely covers the body of the first candle.
Meaning of Bullish Engulfing:
On the first candle, the bears are in control as they push the close lower than the open.
On the second candle, strong buying pressure entered and pushed the price to close higher than the first candle – which indicates that the bulls have won the battle from now on.
The Bullish Engulfing 2-candlestick pattern tells you that the bulls have overwhelmed the bears and are now in control of the game.
Bearish Engulfing
Bearish Engulfing is a bearish reversal candlestick pattern that occurs during an uptrend.
Bearish Engulfing Identification:
The first candle is a bullish candle.
The second candle is a bearish candle.
The body of the second candle completely covers the body of the first candle.
Meaning of Bearish Engulfing:
On the first candle, the bulls are in control as they push the close higher than the open.
On the second candle, strong selling pressure entered and pushed the price to close lower than the first candle – which indicates that the bulls have won the battle from now on.
The Bearish Engulfing Double Candlestick pattern tells you that the bears have overwhelmed the bulls and are now in control of the game.
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