Hello…folks in this article I am going to talk about one of the most famous trading strategies i.e Bullish Engulfing Pattern.
Bullish Engulfing Pattern is one of the most famous and popular trading strategies used by traders to identify possible bullish trends.
What is Bullish Engulfing Pattern?
Bullish Engulfing Pattern is the first candle that appears after a long series of a downtrend.
Most traders use the Bullish Engulfing Pattern to identify the bullish trends to make the possible BUY calls.
If we see a continuous big downtrend and suddenly a long big green candle appears then we can say it is a Bullish Engulfing Pattern.
However, The first Candle must be bearish and the second candle must be bullish and covering or engulfing the bearish candle with at least 75% body.
How to find Bullish Engulfing Pattern?
Well, spotting Bullish Engulfing Pattern is damn very easy.
Here, to illustrate the Bullish Engulfing pattern I am going to use Binomo.
If you don’t have a Binomo account click here.
You can also sign up via the form below.
Now, enter your email, password, select currency and click on create an account.
Once you sign up you will land on the Binomo dashboard.
Now, click on the chart button and select Candlestick from the menu.
That’s it!!! The basic setup is over.
Now, talking about How to find Bullish Engulfing Pattern?
Well, It’s damn very easy.
What you need to do is firstly, you need to find a long series of bearish or Red Candles.
Now, to spot the bullish engulfing pattern, the green candle must be strong and have at least 75% body like given below.
How to Trade with Bullish Engulfing Pattern?
As said earlier the Bullish Engulfing pattern really powerful.
And Identifying and trading with a Bullish engulfing pattern Is damn very easy.
Let’s see some examples:
Similarly, here we can see a bearish trend and a bullish candle appears after a bearish trend but the bullish candle is engulfing or covering the bearish candle.
So, here we use to support and resistance to make BUY calls.