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HomeRight Arrow TerminologyRight Arrow Engulfing Pattern Definition

Engulfing Pattern Definition

Description

A candlestick pattern that signals a potential reversal.

A bullish engulfing pattern occurs when a small bearish candle is followed by a large bullish candle that completely engulfs it, indicating a potential upward trend.

A bearish engulfing pattern occurs when a small bullish candle is followed by a large bearish candle that engulfs it, signalling a potential downward trend.

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