Bullish Engulfing Candlestick Pattern
The Bullish Engulfing candlestick pattern is one of my favorite bullish reversal candlestick patterns. A Bullish Engulfing candlestick is a high confidence buy signal, especially when all the below requirements and characteristics are met.
The potential buying opportunity becomes even less risky when the possible trend reversal is confirmed by another type of technical analysis. The development of this candlestick pattern usually provides a decent scale-in buying opportunity.
The longer and steeper the downtrend is that leads up to the Bullish Engulfing candlestick pattern, the less risky the better the buying opportunity becomes as the probability for a successful reversal increases significantly.
Listed below are the requirements for a Bullish Engulfing candlestick pattern.
- It always has a green colored real body
- It must open below the preceding candlestick's real body
- It must also close higher than the preceding candlestick's real body
By opening lower than the preceding candlestick's real body and then closing above its body, it gives the look as if the current candlestick is "engulfing" or swallowing the preceding candlestick's real body.
Characteristics & Observations
Listed below are some of the characteristics of Bullish Engulfing candlestick patterns, as well as some of my observations from using candlestick patterns for several years now......
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