Basic’s of bullish engulfing pattern:-
Bullish engulfing is a 2 candlestick combination chart pattern. First candle body small and second candle body completely eclipses or “engulfs” the previous period candlestick.The shadows or tails of the first small candlestick are short which enables the body of the second large candlestick to cover the entire candlestick from the previous period.
Markets :- all cash & future ( not for option market)
Work best :- trending market
As implied in pattern name, this trend suggests the bulls have taken control of a security’s price movement from the bears market condition’s. This type of pattern usually accompanies a declining trend in a market, suggesting a low or end to a security’s decline has occurred. this candlestick pattern help for trader better buy and sell decision’s this candlestick pattern is very effective market run according this pattern 50% to 60% and some time more accuracy. Bullish engulfing candles indicate buying interest that swallows the range of the prior candlestick low and surpasses the candlestick highs.This in turn triggers more buyers who spill over into the next candle in this pattern. If the next period candle closes higher than the bullish engulfing pattern, the next leg of the uptrend usually forms.
Bullish Engulfing Candle Reversals
Bullish engulfing pattern very good working in trending market. If big downtrend show bullish engulfing pattern this is very good trend reversal sign. Most of time many traders ignore this pattern but this pattern give you strong reversal point. Every trader want actual bottom in market and this pattern most of time give you actual bottom in this market. we hope this pattern give you more time accuracy in trading.
Benefit of bullish engulfing pattern :-
1. This pattern help for find actual bottom in the market.
2. This pattern give you more time accuracy like 50% to 60%.
3. This pattern not a rare pattern this pattern showing in this market easily.
4. For more accuracy make buy and sell decision with trend reversal indicator.
Non beneficiary point of bullish engulfing pattern :-
1. Some time bullish engulfing pattern give you wrong signal.
2. Bullish engulfing pattern not give you market trend strength.
3. Not make decision only depended on bullish engulfing pattern.
For better understanding watch tradingchanakya youtube video:-