Financial(Stock) Market

  Bullish Engulfing Candlestick ·          It is a positive movement indicator candle stick pattern. There are two candlesticks in this pattern one is red (color may vary) and other is green (color may vary). ·         Whenever such pattern is formed on charts of any script, it shows that there is high possibility of bullish momentum in coming future. ·          it is a two candle reversal pattern. ·          In two candles first candle is small bearish candle whereas second candle is big bullish candle. ·          In this pattern second candle should completely engulf the first candle without regard to the length of the tail shadows i.e. big bullish candle should engulf the small bearish candle. ·        Generally this trend is observed in downtren...

  Bearish Engulfing   This pattern has two candles in it. The name of this candle is Bearish Engulfing candle which is the integration of two words which have their own clear meaning like: Bearish means: Showing down trend & Engulfing mean: Swallowing.   In this pattern first small candle is engulfed by the second large candle. First candle is small bullish candle which may be green in color (color may vary as per user setting) while second is a long bearish candle which is generally red in color (color may vary as user setting). This pattern can be observed at the top of bullish pattern in chart where when it is observed it indicates that bullish pattern is about to end in short term or nearby and bearish trend is about to start.   How it is formed? Bellow here I have tried to explain the formation of the bullish engulfing pattern :- Step 1:- ·     First candle should be small bullish candlestick. Step 2:- ·     Second ca...