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Understanding the Bullish Engulfing Pattern
The bullish engulfing pattern is a strong reversal signal, typically found at the end of a downtrend. It features a small bearish candle completely enclosed by a larger bullish candle, indicating a shift from seller to buyer dominance. For example, after $EMQQ's recent dip, if we saw a small red candle followed by a larger green candle engulfing it entirely, it could suggest potential upside.
1 comments · 1 points
Good point about the engulfing pattern. I find it more reliable when it occurs near a significant support level or in conjunction with other confirming indicators like an RSI divergence.