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Bullish engulfing

A large green candle whose body completely covers the prior red candle's body.

CandlesticksBeginner

Definition

It forms when buyers overwhelm the prior day's selling. It is more notable after a decline, near support, and with higher volume. A bigger engulfing candle relative to the first is generally treated as stronger.

Watch out for

A single pattern is not a reliable signal. Many traders wait for the next candle to confirm.

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