Candlestick Fundamentals โ Pt 4: Bullish/Bearish Engulfing ๐ข๐ด
๐ Engulfing candles = strong reversal signals
โข Bullish Engulfing: A small red candle followed by a bigger green candle. Signals buyers may take control.
โข Bearish Engulfing: A small green candle followed by a bigger red candle. Signals sellers may take control.
How to recognize it:
โข The body of the second candle completely engulfs the first
โข Appears after a trend (uptrend for bearish, downtrend for bullish)
๐ก Tip: Most effective near key levels or trend exhaustion.
๐ฌ Question: Which one do you watch more closely: bullish or bearish engulfing?