Assalamu AlaikumMy Dear Steem Friends,This is @kawsar from Bangladesh.

---

Today i will Discuss with you Engulfing Pattern. Today I will discuss about the 2 types of Engulfing Patterns (1) Bullish Engulfing Pattern and (2) Bearish Engulfing Pattern. Hope you like it, I always try to share with everyone what I know.

---

_{Image Design From Adobe illustrator}

---

Engulfing Pattern

Engulfing Pattern is basically made up of two patterns, there are two candles. The second candle is much larger than the first candle, meaning that if the second candle is placed on top of the first candle, the first candle will no longer be visible. The first candle will be able to cover the second candle perfectly. If we look at the Engulfing Pattern in any market, we can see that the current trend in the market is coming to an end. Now the market will reversal from here to the opposite, that is, if the market is uptrend, then the market will go downtrend. And if the market is in downtrend then the market will go uptrend from here.

---

_{Image Design From Adobe illustrator}

---

Above I have given a picture and here we can see that the second candle is much bigger than the first candle. The first candle is fully capable of cover the second candle. If we look at the market like this, we will understand that this is the Engulfing Pattern.

There are two types of engulfing patterns:

• (1) Bullish Engulfing Pattern
• (2) Bearish Engulfing Pattern

The Bullish Engulfing Pattern gives us an uptrend signal and is seen at the end of the downtrend market. The Bearish Engulfing Pattern gives us signals of downtrend and it is seen in the last stage of uptrend market.

---

---

Bullish Engulfing Pattern

The first candle of the Bullish Engulfing Pattern will be able to cover the second candle completely. The first candle will be smaller and it will be a bearish candle. The second candle will be bigger in size and it will be a bullish candle. The bullish candle will be able to completely cover the bullish candle. If we look at the market like this, we will understand that it is a Bullish Engulfing Pattern.

The Bullish Engulfing Pattern signals us a very strong uptrend. If we see the Bullish Engulfing Pattern after the bearish market, then we can understand that from here the market will reverse and move towards the uptrend. That is, it gives us a strong buy signal. At this stage we will look at an example of a Bullish Engulfing Pattern.

---

_{Image Design From Adobe illustrator}

---

From the picture I shared above, we can see that the first one has a bearish candle, which is much smaller in size and the second one is bullish, larger in size than the bearish scandal. If the bullish scandal is placed on top of the bearish scandal then the bearish candle will no longer be seen which means that the bullish scandal has been able to completely cover the bearish scandal. If we see a market like this, we are getting a strong buying signal here, that is, the market will go up.

---

---

Bearish Engulfing Pattern

The first candle of the Bearish Engulfing Pattern will also be able to call the second candle completely. The first candle will be smaller in size and it will be a bullish candle. The second candle will be bigger in size and it will be a bearish candle. The bullish candle will be able to completely cover the bearish candle. If we look at the market like this, we will understand that it is a Bearish Engulfing Pattern.

The Bearish Engulfing Pattern gives us a very strong downtrend signal. If we see the Bearish Engulfing Pattern after the Bullish Market, then we can understand that from here the market will reverse and move towards the downtrend. That means it gives us a strong sell signal. At this stage we will look at an example of a Bearish Engulfing Pattern.

---

_{Image Design From Adobe illustrator}

---

From the picture I shared above, we can see that the first one has a bullish candle, it is much smaller in size and the second candle is bearish, it is bigger in size than the bullish scandal. If the bullish scandal is placed on top of the bullish scandal then the bullish candle will no longer be seen which means that the bearish scandal has been able to completely cover the bullish scandal. If we see a market like this, we are getting a strong selling signal here, which means the market will go down.

---

---

Many thanks to everyone for reading this post carefully

𒆜🆃🅷🅰🅽🅺 🅴🆅🅴🆁🆈🅾🅽🅴𒆜

@kawsar