A bearish candle is followed by a larger bullish candle in the two-candlestick pattern. The reason this is an indicator of an uptrend is that bulls are outperforming bears. The change in strength with the bulls indicates a reversal of momentum that is likely to last.
The pattern's name derives from the idea that the bullish candle "engulfs" the bearish candle that preceded it.
Cookies
Cookies are small text files placed on your computer that are created by the websites you visit. Cookies are used to improve your user experience, enable functionality on the website, facilitate site security. Fxmerge website use cookies to provide the functionality you need to browse our site correctly. Fxmerge website issue cookies upon visiting our websites, unless the user has changed cookie settings in their browser to refuse cookies. Please note that with cookies switched off, many areas of our website and services will not be made available.
Member SinceJul 08, 2021
Posts 713
Kihn
Nov 10, 2022 a 14:38The pattern's name derives from the idea that the bullish candle "engulfs" the bearish candle that preceded it.