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