Bullish Engulfing Candlestick Pattern. 📈

How should you trade the with this pattern?
Entry & Exit?

A THREAD 🧵
(1/10)

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A bullish engulfing pattern appears when a large green candle appears after a small red candle of the previous day. The body (Green candlestick) of which completely cover the body of the previous day’s (Red) candlestick. (2/10)

This pattern signifies a change or a reversal in the ongoing trend of the prices of a particular security. (3/10)

Generally, the bullish engulfing candle is preceded by more red candles, representing a bearish phase in the market. In fact, the bullish engulfing candle usually represents the bottom of a downward trend in prices, after which the prices begin to show an uptrend. (4/10)

This bullish reversal pattern is found at the end of a downtrend.
When visible, this bullish pattern signals that the previous downtrend has ended and a potential reversal trend (a new uptrend) is beginning. (5/10)