Page 8 - MFX Reversal Patterns C.M

Engulfing

An engulfing pattern signals a reversal, and can be
bullish or bearish. It comprises two candles. The
body of the second must engulf the body of the

first, and must be the opposite colour to the first.

For a bullish engulfing candle, we have a smaller

red candlestick, followed by a green candlestick,
the body of which is greater in size that the
previous candle.

For a bearish engulfing candle, the first candlestick
is smaller and green, followed by a red candlestick,
the body of which engulfs the previous candle.

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