what is engulfing

what is engulfing is a significant candlestick pattern in trading. Where the body of one candle completely engulfs the body of the previous candle. A bullish engulfing pattern occurs when the body of the second candle (usually green or white). Completely covers the body of the preceding bearish candle (typically red or black). This pattern suggests a potential reversal from a downtrend to an uptrend, indicating increased buying pressure and bullish sentiment. Conversely, a bearish engulfing pattern forms when the body of the second candle (usually red or black) entirely engulfs the body of the preceding bullish candle (typically green or white). This pattern signals a potential reversal from an uptrend to a downtrend, indicating heightened selling pressure and bearish sentiment. Traders often use engulfing patterns as entry or exit signals, confirming trend reversals and adjusting their trading strategies accordingly for improved market analysis.

what is engulfing? Classification and trading methods

23 May, 2024

Engulfing candles are one of the popular reversal patterns. Join Forex Trading to learn about what is Engulfing candlestick pattern is and its variations.