Engulfing Bullish
How to
Identify it
- A long black day
occurs
- The second day is a
white that completely engulfs the real body of the first
day
What it
Means
Occurring in a downtrend,
the Engulfing depicts an opening at a new low, followed by a
high buy-in that closes at or above the previous day’s open.
This signifies that the downtrend has lost momentum and the
bulls may be gaining strength. The Engulfing indicator is
also the first two days of the Three Outside patterns
