Bullish Engulfing Pattern
A chart pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses or "engulfs" the previous day's candlestick. The shadows or tails of the small candlestick are short, which enables the body of the large candlestick to cover the entire candlestick from the previous day.
Investopedia Says:
As implied in its name, this trend suggests that the bulls have taken control of a security’s price movement from the bears. This type of pattern usually accompanies a declining trend in a security, suggesting that a low or end to a security's decline has occurred. However, as usual in candlestick analysis, the trader must take the preceding and following days' prices into account before making any decisions regarding the security. Related Terms:
Bar Chart
Bearish Belt Hold
Bearish Engulfing Pattern
Bearish Harami
Bullish Belt Hold
Bullish Harami
Candlestick
Dark Cloud Cover
Doji
Technical Analysis |