Characteristics of a bullish engulfing candle Back to list

Member SinceJul 08, 2021

Posts 713


Nov 10, 2022 a 14:38
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.

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