candle bullish engulfing

The candle bullish engulfing is a powerful reversal signal in technical analysis, indicating a potential upward price movement. This pattern occurs when a smaller bearish (downward) candle is completely engulfed by a larger bullish (upward) candle. The second candle opens lower than the previous close and closes higher than the previous open. Signifying a strong shift in market sentiment from selling to buying. Traders often look for this pattern at the end of a downtrend as a signal to enter long positions. Anticipating a reversal. Understanding and identifying pattern can help traders make more informed decisions and capitalize on potential market reversals. For effective use. Combine it with other technical indicators and confirm the trend change before making trading decisions.