Engulfing patterns is a reversal signal.
The body of the first candle must be smaller than the second
one.
The second candlestick body must be opposite to the first
candlestick body.
The Engulfing patterns are indicating reversals at the tops
and the bottoms.
Type of the Engulfing patterns
There are two types of the Engulfing patterns
- Bullish Engulfing Pattern
- Bearish Engulfing Pattern
They are most helpful when founding the oversold, at the end
of a downtrend or the overbought for the uptrend .
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