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