Key to find:- The Bullish Engulfing Candlestick Chart Pattern occurs at the end of a down trend and consists of a bullish candlestick with body longer than the previous day’s bearish body.
Bullish Engulfing is a Bullish Pattern.
Bullish Engulfing Candlestick Pattern Characteristic.
1.Trend:- Bearish Trend reversal.
2.Occurs:- After a Downtrend.
3.No.of Sticks:- 2.
Bullish Engulfing Candlestick Chart Pattern Formation.
1) Small body Black or Red on 1st bar. (Bearish Candle).
2nd bar close higher than open of 1st bar & open of 2nd bar lower than close of 1st bar. (Bullish Candle).
Bullish Engulfing candlestick criteria.
1.While real body wrap around preceding black real body
2.market in down trend
3.implication:- Market bottoming out
Note:- The Bullish engulfing candlestick doesn’t have to reverse the entire previous bearish candlestick only its body.