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The Engulfing Pattern is a candlestick chart pattern used in trading to spot potential reversals in price trendsu2014it consists of two candles, where the second one completely u201cengulfsu201d the first, signaling a possible shift in momentum; a Bullish Engulfing appears after a downtrend and suggests buyers may be taking over, while a Bearish Engulfing shows up after an uptrend and hints that sellers might be gaining control, helping traders make decisions about entering or exiting trades.
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Read blog - https://navia.co.in/blog/the-engulfing-pattern-technical-analysis/ Introduction to the Engulfing Pattern
Understanding the Engulfing Pattern in Technical Analysis An Engulfing Pattern is a two-candlestick formation indicating a potential reversal in the current market trend. Read blog - https://navia.co.in/blog/the-engulfing-pattern-technical-analysis/
Components First Candle: Represents the current trend (bullish or bearish). Second Candle: Larger in size, completely engulfs the first candle, signaling a shift in market sentiment. Read blog - https://navia.co.in/blog/the-engulfing-pattern-technical-analysis/
Types Bullish Engulfing: Occurs at the end of a downtrend; signals a potential upward reversal. Bearish Engulfing: Occurs at the end of an uptrend; signals a potential downward reversal. Read blog - https://navia.co.in/blog/the-engulfing-pattern-technical-analysis/
Significance Helps traders identify potential entry and exit points based on trend reversals. Read blog - https://navia.co.in/blog/the-engulfing-pattern-technical-analysis/
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