🔥🔥 BULLISH ENGULFING CANDLESTICK 🔥🔥
✍️ DEFINITION:
A bullish engulfing candlestick is a type of candlestick chart pattern used in technical analysis of financial markets. It forms when a small bearish candle is followed by a large bullish candle that completely "engulfs" the previous candle, indicating a strong reversal in market sentiment.
✍️ EXPLANATION :
Here are the key characteristics of a bullish engulfing candlestick pattern:
1. The first candle is a small bearish candle (red or black).
2. The second candle is a large bullish candle (green or white) that engulfs the previous candle.
3. The second candle's body should be at least twice as large as the first candle's body.
4. The engulfing candle's high and low prices should be higher and lower than the previous candle's high and low prices, respectively.
When a bullish engulfing pattern appears, it may indicate a potential reversal in the market trend, signaling a buy opportunity for traders and investors. However, it's important to combine this pattern with other technical and fundamental analysis tools to confirm the signal.
