Engulfing PatternsEngulfing Patterns Charting patterns for Japanese candlesticks.
There are both bullish and bearish engulfing patterns.
Bullish Engulfing Pattern Made up of white real body which
so large that it exceeds the upper and lower lines of the previous
much smaller black real body (which is in a downward trend).
Bullish engulfing is an important signal that a price is bottoming
out and starting a reversal.
Bearish Engulfing Pattern Shows when selling pressure forces the
share price down. This is displayed as a black real body exceeding
the higher and lower lines of the previous much smaller white
real body,(which is in an upward trend)
- Engulfing Patterns are used in Toplists as a filter criteria for Chart alerts (click here)
- Candlesticks (The basics) (Click here)