Bullish & Bearish Engulf
Combines the bullish and bearish engulfing patterns to indicate potential reversals in either direction.
Bullish Engulfing: The Bullish Engulfing pattern is a reversal pattern typically found at the end of a downtrend and consists of two candles. The first candle has a small body, followed by a larger candle whose body fully engulfs the body of the previous candle and closes in the opposite direction of the trend. Unlike the outside reversal chart pattern, it is not necessary for this pattern to fully overtake the range (high to low), only the open and the close.
Bearish Engulfing: The Bearish Engulfing pattern is a reversal pattern typically found at the end of an uptrend and consists of two candles. The first candle has a small body, followed by a larger candle whose body fully engulfs the body of the previous candle and closes in the opposite direction of the trend. Unlike the outside reversal chart pattern, it is not necessary for this pattern to fully overtake the range (high to low), only the open and the close.