An engulfing patternAn engulfing pattern is a Japanese candlestick pattern that ... More is a Japanese candlestick pattern that usually indicates a reversalWhat is a trend reversal? A trend reversal is when the mark... More move.
There are two types of engulfing patterns: and .
Bullish engulfing pattern
A bullish engulfing pattern (1) usually indicates a to the upside. It is formed by a bearish that is immediately followed by a larger bullish candle. The bullish candle closes above the previous bearish candle and gives the appearance of engulfing it. It shows that the buyers overpowered the sellers and that the market sentimentThe market sentiment is the overall feeling or mood of the m... More has changed to the upside (as indicated by the chart below).
A bearish engulfing pattern (1) usually indicates a strong reversal to the downside. It is formed by a bullish candle that is immediately followed by a larger bearish candle. The bearish candle closes below the previous bullish candle and gives the appearance of engulfing it. It means that the sellers overpowered the buyers and the marketWhat are value stocks? A value company is a company that app... More sentiment has changed to the downside (as indicated by the chart below).
