Definitions

Engulfing Pattern

Posted By: TradersLog

A reversal pattern on a Japanese Candlestick chart that can be bearish or bullish depending upon whether it is in an uptrend or downtrend. An Engulfing Pattern is a two candlestick pattern, where the first day is characterized by a small body, followed by a day whose body completely engulfs the previous day’s real body. The second day’s real body (candle) should be the opposite color of the first real body. The bearish engulfing pattern signals the end of an uptrend and the bullish engulfing pattern suggests a downtrend reversal.

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1 Comment

Categories Definitions, Technical Analysis Definitions | Tags: , ,


  • By Dan

    On 11-12-2009 at 10:28 pm

    Shooting star in the S&P today!


    Like or Dislike: Thumb up 0 Thumb down 0

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