The bullish engulfing pattern is a two-candle reversal pattern. The second candle completely ‘engulfs’ the real body of the first one, without regard to the length of the tail shadows.
This pattern appears in a downtrend and is a combination of one red candle followed by a larger green candle. On the second day of the pattern, the price opens lower than the...
A Doji is created when the open and close for a price are virtually the same. Doji tend to look like a cross or plus sign and have small or nonexistent bodies. From an auction theory perspective, Doji represent indecision on the side of both buyers and sellers. Everyone is equally matched, so the price goes nowhere; buyers and sellers are in a standoff.
When it...
