What is Engulfing pattern? What are its conditions to qualify? When to buy and Sell?

[suguna]

It is a trend reversal pattern. normally two colours ae used say green (bullish) and red (bearish)

when one body completely covers the second body then engulfing accurs. The volume also should me more on that day

when the green body covers the previous red body go for buying it should happen after the bearish trend

when the red body covers the previous green body then go for selling it should happen after a bullish trend

 

[Halima.S]

Bullish Engulfing is effective when there is a continuous downtrend for a few days

conditions : the body of the current day should cover the body of the previous day and current day candle should be green then it is a bullish trend reversal.

Buy when the price goes above the previous high. The difference between the previous high and previous low is the risk. The same difference on the other side can be taken as the target

Bearish engulfing is the reversal of the above

[Vignesh]

engulfing is a reversal pattern

bullish engulfment
in a bearish trend the ,the body of a bearish candle is fully covered by the next candle,and price closes towards the high point of the day , one can create a long position when price moves above the high of the previous bearish candle

bearish engulfment
in a bullish trend the, a bearish candle covers the entire body of the previous bullish candle, and price closes towards the end of the day,one can short when the price breaks the low of the previous candle

[Muthu Kumaran]

Engulfing is a reversal pattern. There are 2 types of engulfing.,

– Bullish engulfing

– Bearish engulfing

 

Bullish Engulfing

Forms when a small bearish candle followed by a large bullish candle that completely engulfs the previous candle.

Buy – enter the candle next to engulfing candle. Stop loss is the low of the engulfed candle. High volume is good.

 

Bearish Engulfing

Forms when a small bullish candle followed by a large bearish candle that completely engulfs the previous candle.

Sell – enter the candle next to engulfing candle. Stop loss is the high of the engulfed candle. High volume is good.

[Fathima Shafi]

Candlestick engulfing is a trend reversal pattern. Engulfing pattern can be bullish or bearish.
Bullish engulfing- this pattern appears at the bottom of a downtrend. The pattern consist of a smaller bearish candlestick( day1) and a larger bullish candlestick of day2. The bearish body of day 1 should be completely covered by bullish candle of day2. There should be slight increase in trading volume. long position can be created the next day when the price reaches the previous day high. Stop loss can be created at the previous day price low.

Bearish engulfing- this is exactly opposite of the the bullish engulfing. It occurs at the uptrend when the bullish candle’s body of the previous day is covered by the day’s bearish candle. Short position can be created when the price falls below the previous low.

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