Bullish Engulfing Pattern
Market Context: Occurs during a downtrend and signals a momentum shift from sellers to buyers.
Candlestick Structure: Composed of two candles—a smaller red candle immediately followed by a larger green candle whose body fully covers ("engulfs") the previous red candle's body.
Signal Strength: A larger size difference between the green and red candles indicates a stronger potential reversal signal.
Confirmation: Higher trading volume provides further confirmation, making the pattern even stronger.
Market Context: Occurs during a downtrend and signals a momentum shift from sellers to buyers.
Candlestick Structure: Composed of two candles—a smaller red candle immediately followed by a larger green candle whose body fully covers ("engulfs") the previous red candle's body.
Signal Strength: A larger size difference between the green and red candles indicates a stronger potential reversal signal.
Confirmation: Higher trading volume provides further confirmation, making the pattern even stronger.
