Bullish Engulfing Candlestick – Technical trading one pattern for profit.
The bullish Engulfing candlestick is a very lucrative technical pattern that shows buyers taking the direction away from sellers. We are looking at two candlesticks where the present candlestick is larger “engulfing” the previous candlestick. Another way to refer to this pattern is an “outside day” We look for this pattern as a reversal of a downtrend, or as a breakout pattern in consolidation.
Bullish Engulfing candlestick is the large green candle where price opened lower than the previous candlesticks low, and closed higher than the previous candlesticks high. The green candlestick is engulfing the previous candlestick. So buyers took control of the direction and we will be watching for Carry through in this direction with the next candlesticks.
A note, this is the best example, sometimes the next candle will open at roughly the mid point, about 50% of the green candle and then will move higher with buyers in control. There is a probability of this happening but it will not always happen so be careful and have a risk management plan.
Bullish Engulfing candlestick patterns can be found across the markets in stocks, commodities and Forex pairs too.
Apple was also ready to play with this big move up too.
So with all these bullish engulfing candlesticks we could see that maybe the next day the market was set for a move up.
The market doesn’t always move as planned, so manage your risk, protect your capital and trade your plan.