BULLISH
ENGULFING: a large up
body engulfing a preceding smaller down body, happening during a downtrend. The
up body does not necessarily engulf the shadows of the down body but totally
engulfs the body itself, the length of the first down candlestick in Bullish
Engulfing is not important, it can even be a Doji, the second one is a normal
or long up candlestick, the up body is longer than the previous down body. The
buying pressure overcomes selling and finally the market closes above the open
of the previous day, the downtrend is damaged, prices must cross above the last
close for confirmation.
BEARISH
ENGULFING: A large
down body engulfing a preceding smaller up body, happening during an uptrend.
The down body does not necessarily engulf the shadows of the up body but
totally engulfs the body itself, the length of the first up candlestick in
Bearish Engulfing is not important, it can even be a Doji, the second one is a
normal or long down candlestick, the down body is longer than the previous up
body. The selling pressure overcomes buying and finally the market closes below
the open of the previous one, the uptrend is damaged, prices must cross below
the last close for confirmation.
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