Bullish Engulfing

Bullish Engulfing

In this pattern, the real body of a bearish candle (the range from open to close) is encompassed by the body of a consequent bullish candle. This indicates an increase in activity from both bears and bulls, and a shift of overall market sentiment towards bullishness. Like with all the patterns we’ve discussed thus far, this pattern should be viewed in consideration of the trend at the time: if a bullish engulfing pattern appears in a downtrend, it can suggest a shift price trend and the onset of buying demand becoming the prevailing force that will ultimately push price higher in the context of the timeframe being viewed.