The bullish engulfing bar pattern
The bullish engulfing bar consists of two
$BONK candlesticks, the first one is the small body, and the second is the engulfing candle, see the illustration:
The bullish engulfing bar pattern tells us that the market is no longer under control of sellers, and buyers will take control of the market. When a bullish engulfing candle forms in the context of an uptrend, it indicates a continuation signal.
When a bullish engulfing candle forms at the end of a downtrend, the reversal is much more powerful as it represents a capitulation bottom.
See the example below: $DONKEY
The example above shows us clearly how the market changes direction after the formation of a bullish engulfing bar pattern.
The smaller body that represents the selling power was covered by the second body that represents the buying power.
The color of the bodies is not important. What’s important is that the smaller one is totally engulfed by the second candlestick.
Don’t try to trade the market using this price action setup alone, because you will need other factors of confluence to decide whether the pattern is worth trading or not, i will talk about this in the next chapters.
What i want you to do now is to get the skill of identifying bearish and bullish engulfing bar on your charts. This is the most important step for the moment.
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