Every Candle in a chart has its own meaning:- One of which is explained bellow
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...