#Educational What is Engulfing Candlestick Pattern ?
#Engulfing candlestick pattern is a popular
candlestick pattern used in technical analysis to indicate a potential trend reversal or continuation. It is formed when a smaller
candlestick is completely engulfed by the body of a larger
#candlestick that follows it.
There are two types of Engulfing
Candlestick patterns:
1. Bullish engulfing pattern: This pattern occurs when a small
#bearish candlestick is followed by a larger
#bullish candlestick, with the body of the latter completely covering or engulfing the body of the former. This pattern is usually seen as a bullish signal, indicating a potential reversal of a
#downward trend.
2. Bearish engulfing pattern: This pattern occurs when a small
#bullish candlestick is followed by a larger
#bearish candlestick, with the body of the latter completely covering or engulfing the body of the former. This pattern is usually seen as a bearish signal, indicating a
#potential reversal of an upward trend.