| Bullish Engulfing Pattern | |
 A chart pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses or "engulfs" the previous day's candlestick. The shadows or tails of the small candlestick are short, which enables the body of the large candlestick to cover the entire candlestick from the previous day.  |
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 As implied in its name, this trend suggests that the bulls have taken control of a security’s price movement from the bears. This type of pattern usually accompanies a declining trend in a security, suggesting that a low or end to a security's decline has occurred. However, as usual in candlestick analysis, the trader must take the preceding and following days' prices into account before making any decisions regarding the security. |
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 The Art of Candlestick Charting - Part 1 - Discover the components and basic patterns of this ancient technical-analysis technique. The Art of Candlestick Charting - Part 2 - Learn why crowd psychology is the reason this technique works, and discover how to analyze 'hammers and 'hanging men'. The Art of Candlestick Charting - Part 3 - Take a look at continuation patterns and how they can confirm or deny trends. The Art of Candlestick Charting - Part 4 - Learn about more continuation patterns on the bullish and bearish sides: the engulfing pattern, harami and harami cross. |
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