Enter your email address and we’ll send you a free PDF of this post. Bullish engulfing, as well as, bearish engulfing are two of the most powerful price action candlestick patterns. I have mentioned them briefly in my Candlesticks article, contrarian indicator forex best now I want to put more emphasis on those two.
More than that- bullish engulfing and bearish engulfing patterns are deeply ingrained in my trading strategy. Let’s explore what those two candlestick price action patterns can help us achieve. Bullish Engulfing Candlestick and Price Action What is a candlestick Before I move to the real part, I would like to remind you once again what is a candlestick. A candlestick contains an instrument’s value at open, high, low and close of a specific time interval. Let’s say we are looking at a daily candlestick. It does contain the value at open, high, low and close on any particular day.
There are various types of candles and one of the most famous ones is the bullish engulfing and bearish engulfing candlestick patterns. Let’s start by first exploring the bullish engulfing candlestick pattern. Bullish Engulfing Candlestick What is a bullish engulfing candle? The image above is showing a perfect bullish engulfing pattern. A bullish engulfing candlestick formation represents that bulls are in full control of bears. This shows the readiness of the market participants to drive a particular instrument’s price higher.