MOST RELIABLE CANDLESTICK PATTERN

Pattern name: Bullish Engulfing
Pattern Type : Bullish Reversal
No. of Candles : 02

How to Identify it ?
1)There must be a preceding Downtrend.
2)A short Red candle followed by a long Green candle.
3)The Green candle should opens lower & closes higher than the Red candle.
4)The Red candle should be completely engulfed by the Green candle.

Psychology behind it :
1)The Bears lose momentum & the Bulls take charge and managed to close above the red candle.
2)It implies the bulls have fully override the bears.

How to trade it ?
1)Look for the Bullish Engulfing at the bottom of the Downtrend.
2)Upon confirmation, open a Long position in the 3rd Candle.
3)Place a Stoploss below the low of the Green candle.



Happy Trading :)
-Divyaa Pugal