Engulfing Candlestick Patterns: Full Guide & Tips

The engulfing pattern is of Japanese origin, where candlestick technical analysis appeared in the 18th century on the rice exchange. The pattern consists of two outside bars on a candlestick chart, in which the second candle engulfs the first.

Despite its age, the pattern is still relevant in the 21st century. First of all, it reflects the psychological state of market participants, as well as the balance of power between sellers and buyers in the market. In addition, engulfing is one of the key reversal patterns that warn of an imminent trend reversal.

Read this article to find out what… Read full author’s opinion and review in blog of #LiteFinance