The meaning of #engulfing is that the previous candle must be closed / warped / covered by the entire candlestick body with the wrapping candlestick, in this case the shadow is not taken into account.

requirement :

1. Must have occurred #trend whether #bullish or #bearish

2. There are 2 candlesticks that have the following formation

Bearish Engulfing signal pattern occurs: If the previous CS (Candle Stick) in a bullish trend there is a candlestick with a small body and has a green color and after that there is a CS body which is red and covers (engulfing) the previous CS.

Bullish Engulfing signal pattern occurs: If the previous CS (Candle Stick) is in a bearish trend there is a candlestick with a small body and has a red color and after that there is a CS body which is green and covers (engulfs) the previous CS.

Bullish engulfing:

  1. Bullish Length #candlestick > the length of the previous bearish candlestick

  2. High bullish candlestick price > previous high bearish candlestick price

  3. Close bullish candlestick price > previous high bearish candlestick price (not mandatory)

Bearish engulfing:

  1. Length of bearish candlestick > length of previous bullish candlestick

  2. Bearish candlestick low price < previous bullish candlestick low price

  3. Close price of bearish candlestick < low price of previous bullish candlestick (not mandatory)