Bullish Engulfing pattern criteria
1. Located at the bottom of a downtrend, even if the downtrend has been short.
2. The body of the first red candle is completely engulfed by the body of the second blue candle.
Shadows are not a consideration. The blue candle ideally will close near its high.
3. When the engulfing pattern occurs after a fast move down there will be less stock to slow down the reversal move.
4. When the engulfing body engulfs more than one previous candle body there is more power in the
reversal.
5. If the engulfing body engulfs the body and the shadow of the previous candle there is more power in the reversal. |
Bullish Engulfing pattern |
Bullish Engulfing pattern
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Oleh
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