Looking for a strong bullish signal in the financial market? Consider the Bullish Engulfing Candlestick Pattern. This pattern is characterized by a bearish red candle followed by a larger green candle that completely engulfs the red. In this article, we will explore the Bullish Engulfing Candlestick Pattern, including the candle body, wick, and colors, as well as its Modus Operandi and Fun Fact.
Candle Body
The first candle will be a bearish red candle with a small candle body. The second candle will be a green candle with a larger body than the first bearish candle. Hence the name – the red is completely engulfed by the green.
Candle Wick / Shadow
The first bearish candle will have longer wicks than the second bullish candle due to differences in candle bodies.
Candle Colors
The Bullish Engulfing has two candles. The red candle always precedes the green candle.
Modus Operandi
Bullish Engulfing Candles usually occur at the bottom of a strong downtrend. The significance of this candlestick pattern is high. It is a strong signal of an impending change in the price direction. Usually, this signals that the second candle is powerful enough to start a new trend.
Fun Fact
Bullish Engulfing candlestick patterns are very popular amongst traders. They are very easy to spot and then make a good trade from it.
Play Video about BitcoinTAF Chart Patterns