Bullish Engulﬁng Pattern: To Buy Or Not To Buy? by Pawel Kosinski
When you see a familiar chart pattern on a price chart, should you automatically do what the pattern suggests, or should you look at it more closely before making the decision? Here are some scenarios that could play out when a bullish engulﬁng pattern appears on a price chart.
The bullish engulﬁng pattern is a popular candlestick pattern that consists of two candles—the ﬁrst one is bearish and the second one is bullish. The body of the second candle engulfs the ﬁrst one. In other words, the opening price of the second candle is below the closing price of the ﬁrst candle bar ...