How to understand bullish engulfing and what is bullish engulfing?

The engulfing pattern, also known as the holding pattern, is made up of two **s. Bullish engulfing occurs in a downtrend, where the body of the second white candlestick eats the body of the first black candle; A bearish engulfing occurs in an uptrend where the body of the second black candlestick eats the body of the first white candle. The Engulfing pattern can show the ebb and flow of long and short forces.

Taking the bullish engulfing as an example, the back of the yang line swallows the front of the yin line in one bite, representing the growth of the bulls' power, the momentum is like a rainbow, and the bears' power has signs of retreat. Bearish engulfing is the opposite. The importance of the engulfing pattern is related to the relative length of the entities, the relationship between the shadows, and other factors.

The entity of the first ** is very short, the entity of the second ** is very long, and the entity of the second ** completely eats the first line - including the shadow line, such an engulfing pattern is more significant. For the engulfing pattern, we also have to consider the overall technical aspect of the pattern - is there a reasonable product of the risk-reward ratio and the trigger probability? Is there a fit for the pressure support level?

For example, a bullish engulfing that occurs in a support zone is more likely to be a valid bottom reversal signal than a bullish engulfing without support. Don't look at a certain ** pattern in isolation, look around and pay attention to the overall situation. There are three criteria for determining the engulfing pattern:

1.Before an engulfing pattern, the market must be in a clearly discernible uptrend or downtrend, even if the trend is only short-term. 2.

The engulfing pattern must consist of two candlesticks. The body of the second candlestick must cover the body of the first candlestick (but it does not necessarily engulf the upper and lower shadows of the former). 3.

The second entity of the engulfing form must be the opposite color of the first entity. There are exceptions to this criterion, provided that the body of the first candlestick must be so small that it almost forms a doji (or it is just a doji). In this way, if after a long-term downtrend, a small white body is engulfed by a large white body, then it may also constitute a bottom reversal pattern.

Conversely, in an uptrend, if a small black body is engulfed by a large black body, then it may also constitute a top reversal pattern.

Hello, the bullish engulfing is made up of a combination of two **s. The first candlestick is a black candle, the second candle is a bullish candle, and the bullish candle completely contains the body of the previous black candle.

For example] bullish engulfing mostly occurs at the bottom of a wave of **trend**, **the last yin candle of the trend is engulfed by a larger yang candle, that is, yang envelops yin, which means that there will be strong ** momentum in the short term.

For example, after Suning Yunshang (002024) peaked in December 2007, after 10 months, the stock price fell from 16 yuan to the lowest yuan! On April 28, 2008, there was a bullish engulfing pattern, and then the stock price bottomed out and doubled**.

Characteristics] bottoming bullish pattern. In a trend, there are two ** of yin and yang in the front, and then the second ** entity engulfs the first ** body, completely enveloping the first ** body, and the combination formed by these two ** is called bullish engulfing.

Bullish engulfing bearish engulfing pattern.

Bullish engulfing, **** pattern term. The bullish engulfing pattern reflects that the stock price was in a downtrend, but then a strong entity emerged, and this body "embraced" or engulfed the entity in front of it. This situation shows that the buying force in the market has outweighed the selling force.