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

[Hariesh]

Bullish Engulfing:This should occur after a recent price fall.There is a sudden increase in price after a recent price fall.The bullish body should cover the previous day body.Long position should be created when it gone passes the bullish day high.Stop loss is the bullish day low.

[Mohammed Arshath Ali]

Engulfing pattern is the reversal of the current price trend.

Bullish Engulfing:

A recent fall in price should be witnessed and the latest bullish candle should cover the previous bearish candle with a slight increase in trading volumes during last two or three days. Long position can be created when the price crosses the last high of bullish candle.

Bearish Engulfing:

A recent rise in price is witnessed and the latest bearish candle should cover the previous bullish candle with a slight increase in trading volumes during the last two or three days. Short position can be created when the price crosses the last low of the bearish candle.

[Supriya Rayabhagi]

Engulfing pattern is a trend reversal pattern in which the second candlestick completely engulfs the first candlestick. There are two types of engulfing pattern

Bullish Engulfing pattern:

• The prior trend should be down trend
• The latest bullish body should completely cover the previous day bear body.
• The trader should Buy after the price crosses the high of the second candle.
• volume is expected to increase in any of the two days.

Bearish Engulfing pattern:

• The prior trend should be uptrend.
• the second candle should completely engulf the first candle.
• the trader should go for short after the price crosses the low of the second candle.
• Volume is expected to increase in any of the two days.

[Leena Nathan]

Engulfing pattern is a trend reversal pattern.

Conditions:-

1) The recent fall in price should be witnessed.

2) The latest bullish body should cover the previous days bear body

3) The slight increases in trading volume is expected during last two days.

 

Entry-when price crosses previous high.

 

[shivkant]

when current candle stick covers up previous one completely it is said to be engulfing pattern

– recent price fall/rise should be there

-volume is expected to raise

– previous body must covered fully by current one

buy when price is goes higher then previous high

sell if price goes down the previous low

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