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A bullish engulfing is a combination bullish reversal candlestick pattern in the 12 golden K, often regarded as a signal that a downtrend is about to correct or come to an end.
A bullish engulfing pattern has high requirements for the structure. The ideal situation is formed by two candlesticks of opposite colors, where the first must be a bearish candle and the second must be a bullish candle. Additionally, the body of the second bullish candle must completely engulf the body of the first bearish candle, presenting a fully wrapped state.
A bullish engulfing pattern can also have a deformed structure, as shown in the figure. However, the essence remains unchanged; the body of the final bullish candlestick must completely wrap the body of the preceding bearish candlestick.
Note:
1. The appearance of a bottom at the end of a downtrend is likely a signal that the trend is about to reverse or end.
2. The bullish engulfing pattern did not appear at the bottom of the trend; give up on entering.
3. Be cautious when entering the market if the shadow is too long.
4. Must be used in conjunction with key positions.
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