✨The Engulfing Pattern is an important and well-known candlestick pattern that indicates a potential reversal in the market trend. This pattern consists of two candles and shows how the buying and selling power in the market is changing.
✅There are two types:
1. Bullish Engulfing (Buying Signal)
2. Bearish Engulfing (Selling Signal)
Bullish Engulfing occurs when a small bearish (red) candle is followed by a large bullish (green) candle that completely engulfs the first candle. This indicates that buyers have taken control of the market, and the price may go up.
Bearish Engulfing occurs when a small bullish candle is followed by a large bearish candle that completely engulfs the first candle. This indicates that sellers have taken over the market, and the price may go down.
✨This pattern is more effective when it appears at a strong support or resistance level. Using it with caution and confirmation can make it a powerful signal.
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