✤ Setup Conditions
1. 1st candle’s close must be greater than 1st candle’s open, it means 1st candle is a bullish candle.
2. 2nd candle’s close must be less than 2nd candle’s open, it means 2nd candle is a bearish candle.
3. 2nd candle’s high must be greater than 1st candle’s high, it means 2nd candle has a higher high.
4. 2nd candle’s low must be less than 1st candle`s low,it means 2nd candle has a lower low
5. 2nd candle’s entire range must be greater than entire range of 1st candle.
6. 2nd candle’s close must be less than 1st candle`s low.
7. 3rd candle confirmation needed.
A Bullish Engulfing candlestick pattern signals a potential reversal from a downtrend to an uptrend. it consists of two candles:
1. First Candle
☛ A small bearish candlestick (green/ white body) indicating buying pressure.
2. Second Candle
☛ A smaller bearish candlestick (red/black body) that is completely engulfs the body of the first candle.
✤ Key Characteristics
☛ The second candle`s open is higher than the first candle`s close, and it`s close is lower than the first candle`s open.
☛ indicates a strong shift from bullish to bearish sentiment.
✤ Interpretation
☛ Suggests sellers have control, potentially leading to a downward move.
☛ More reliable if it forms near a resistance level or after a significant uptrend.
✤ Confirmation
☛ Traders often wait for the next candle to close lower to confirm the bearish reversal.
