Practical Education: How to Identify the "Bullish/Bearish Engulfing" Reversal Pattern
The "Engulfing" (Engulfing Candle) is a powerful 2-candle reversal pattern. A Bullish Engulfing occurs when a green candle completely "engulfs" the body of the previous red candle, signaling a possible reversal to bullish. A Bearish Engulfing is the opposite. This pattern indicates a sharp change of strength between buyers and sellers and is a strong signal for traders.
Look for this pattern now. Open the 4H chart of volatile assets like AVAX and DOGE and see if you can identify an Engulfing signal.
