" All about BULLISH and BEARISH ENGULFING "
~ This pattern is one of the most common candlestick pattern yet sometimes people are not able to trade it properly.
~ They both are the trend reversal candlestick pattern.
~ It is a two-candle pattern.

Bullish Engulfing
~ In this pattern, a large bullish (green) candle completely engulfs the small bearish (red) candle

~ This pattern is credible only when it is formed at the bottom of the trend

~ Prior trend should be downtrend before the formation of this pattern take place

~ Generally, I have observed that downtrend should be of at least 12% to 15% before the formation of this pattern.

~ I never initiate the trade on the bullish engulfing pattern if the prior trend is bullish. I don't trade bullish engulfing as trend continuation pattern.

~ The accuracy of this pattern is nearly between 70% to 80%

~ Most of the time I trade bullish engulfing on daily chart.

~ Stop Loss is 1% below the low of bullish(green) candle.

~ SL is on the level basis not on the closing basis.

~ Sometimes a trader needs to use critical thinking skills while placing stop-loss and that comes with practice and time.

~ Target : I booked 30% of the quantity as soon as I achieved 6% to 8% return. My ultimate target is not more than 12% to 15%.