Candlestick chart patterns - Bullish Engulfing

As you can see on a picture above, bullish engulfing occurs when one candle surrounds or engulfs the previous one after a downtrend. The bullish engulfing represents a reversal of supply and demand. At first there was a downtrend, the stock, commodity or index has been selling off. But suddenly strong buying interest comes in and turns the market around. The larger the bullish candle in relationship with previous candles, the more significant the possible reversal.


4 comments:

Unknown said...

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Chad
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Unknown said...

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Unknown said...

A hanging man is a bearish candlestick pattern that forms at the end of an uptrend. Hanging man formations can be more easily identified in intraday charts than daily charts. You can how to read