Engulfing patterns

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An engulfing candle stick pattern can be either be a bullish or bearish reversal pattern. The pattern is confirmed when a candle stick has ended with the main bodies open and closing price is above and below the previous candles open and close price.

Bullish engulfing pattern

Screen Shot 2017-05-29 at 16.23.07
Bullish engulfing candlestick

A bullish engulfing pattern is confirmed after a bearish trend. It is confirmed when the price opens at or below the previous candles closing price and closes above the previous open price.

Bearish engulfing pattern

Screen Shot 2017-05-29 at 16.26.49
Bearish engulfing candlestick

A bearish engulfing pattern is confirmed after a bullish trend. It is confirmed when the price opens at or above the previous candles closing price and closes below the previous open price.

 

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