What is Bullish Engulfing Patterns?
Bullish Engulfing Patterns refer to a K-line combination in which a large or medium bullish candle suddenly engulfs a previous bearish candle, indicating that the bulls have taken over and the market is likely to continue to rise. This is a combination of what is known in the market as a bullish reversal signal. In different stages of trend, the Bullish Engulfing Patterns also have different market meanings. In addition, the Bullish Engulfing Patterns do not necessarily have to be a combination of two candles, but can also be a bullish candle engulfing several small bullish candles in front.
Application Strategies:
- The price of the currency had a significant drop before and the main force may be leaving at any time.
- The volume of transactions significantly increased before the formation of the Bullish Engulfing Patterns, indicating that the main force may have partially exited.
- If the price of the currency continues to decline after the formation of the Bullish Engulfing Patterns, the downtrend is confirmed.
As shown in the following example chart：
