Technical analysis
Engulfing
An engulfing pattern is two candles where the second fully "swallows" the body of the first, signalling a possible reversal.
An engulfing pattern is two candles where the second fully "swallows" the body of the first, signalling a possible reversal.
A bullish engulfing (after a decline) shows buyers have strongly taken over; a bearish engulfing, the opposite. It is one of the most watched two-candle reversal patterns.
After a decline, a large green candle engulfs the prior red one: a bullish reversal signal.
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