What is Engulfing pattern? What are its conditions to qualify? When to buy and Sell?

[Shantanu]

1. Current day’s body completely covers the previous day’s body
2. Slight increase in volume
3. Trend reversal is observed through color change.

If all the above conditions are met, we can qualify this pattern as Engulfing Pattern.

One can buy when the prices go above current day’s high and the stoploss can be set at today’s low (in case of Bullish trend).

[Aruna]

Engulfing pattern indicate trend reversal

Market must be in a either defined uptrend/downtrend before engulfing occurs.

Buy- Latest green body completely cover previous red body and if price goes above  green candlestick (should have downtrend before engulfing occurs)

Sell-Latest red body completely cover previous green body and if price goes below red candlestick(should have uptrend before engulfing occurs)

 

 

[monish kumar]

incase of BULLISH ENGULFING

The latest green body should cover the previous red body and this should consider only after a significant fall.

buy at when reaches the high of the last two days.

stop loss is the low of the engulfed day

target is difference between entry and stoploss.

same viceversa in BEARSIH ENGULFING

 

[satish katwate]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Engulfing pattern  bullish or bearish are  candlestick reversal patterns .</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Engulfing candlestick patterns takes two candlesticks to be identified. A bullish engulfing pattern is characterized by a bullish candle whose body, the open and close engulfs the previous candle’s body. Conversely, a bearish engulfing pattern is characterized by a bearish candle whose body engulfs the previous candle’s body.An engulfing candlestick patterns are usually identified near the tops and bottom.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Buy  When prices is above the Engulfing candlestick</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Sell  when the price is below the Engulfing candlestick</p>

[vishal]

Engulfing pattern is used for a trend reversal.
Recent fall/rise in trend.
the candlestick must completely engulf the previous candlestick.
Buy: When prices go above the Engulfing candlestick . Stop loss : Engulfing low (long position )
Sell: When prices fall below the low of the Engulfing candlestick. Stop loss: Engulfing high. (short position )

[Author]

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