|Bullish Harami||Bullish Piercing||Three Outside Up||Three Inside Up|
|Morning Star||Morning Star Doji||Abandoned baby Bullish||Hammer|
|Inverted Hammer||Three White Soldiers||Bullish Kicker|
For this pattern to be formed it is extremely important:
a. The open price of the Day 2 candlestick is lower than the close price of Day 1 candlestick.
b. The close price of the Day 2 candlestick is higher than the open price of Day 1 candlestick.
Bullish Engulfing Candlestick Pattern is a very common trend reversal pattern. Though it is not easy to pick this pattern but if done correctly one one can easily catch the trend reversal/buying Signal, and its highly rewarding.
The strength of this pattern is increased by the size of the engulfing candlestick. The bigger the engulfing candlestick the more significant is the pattern. The first day the small bearish candle may looks like a continuation of downtrend but its small size irrespective of wicks may show that the bearish signal is weakening. This is confirmed by the long bullish candlestick formed the next day. The larger candlestick tells a lot more about the market sentiments that the bull is taking over the bear.
On combining this pattern with any other technical indicators like Volume, Stochastic, RSI, MACD etc., further confirms this pattern and one can quickly pick up the trend change or the buy signal. For example evidence of higher volume on the third day further strengthen this pattern reliability. Similarly a price gap up the next day (Day 3) support further, this pattern of trend reversal .
Corresponding Patterns of Bullish Engulfing is as follows:
1. Bearish Engulfing
2. Three Outside Up
Now we have learn what Bullish Engulfing candlestick is, its time to see them in real life. Our website provides free stock screening based on Bullish Engulfing Candlestick Pattern.
|Bullish Engulfing||Bullish Harami||Bullish Piercing||Three Outside Up|
|Three Inside Up||Morning Star||Morning Star Doji||Abandoned baby Bullish|
|Hammer||Inverted Hammer||Three White Soldiers|