TECHNICAL ANALYSIS FOR BEGINNERS PART (4)

ENGULF PATTERN

This pattern is formed when one candle's body completely "engulfs" the previous candle's body.

This can signal a strong reversal in the market, depending on the direction of the engulfing candle.

Types of Engulfing Candle:

1. Bullish Engulfing: Is a candlestick pattern that's considered a bullish signal. Its formed when a green candle completely "engulfs" a red candle from the previous period.

This pattern shows that the bulls have taken control of the market and that the price is likely to move up.

2: Bearish Engulfing: Is the opposite of a bullish engulfing candle. It's formed when a red candle completely engulfs a green candle from the previous period.

This pattern shows that the bears have taken control of the market and that the price is likely to move down.