What is a Bullish Engulfing Pattern?

The bullish engulfing pattern is a type of candlestick formation which usually appears when steep market declines are experienced and tends to send a signal that the down trend is about to end. Thus, it is characterized as a trend reversal pattern.

The bullish engulfing pattern is formed when a white real body fully covers ("engulfs") the prior candlestick's black real body. The wicks of the prior candlestick may not be engulfed.

The strength of the sent trend reversal signal is increased with the increase in the length of the white candle. If two candles are of an equal size, then this may signify a future range trading beginning.

If a currency pair closes after it has formed a bullish engulfing pattern, traders tend to buy this currency pair.

To be successful at forex trading you need two main things - the knowledge and the right trading plaftorm. For a trading platform we can recommend you Easy Forex. It offers unique features such as Inside Viewer™, which will give you a unique insight of what other traders are doing, competitive spreads, 24/7 support, etc. Start trading from as little as $25.

Bookmark this page (CTRL+D) :