Bullish Engulfing Pattern

Pattern type: Bottom Trend Reversal

Formation
1. Day 1 Bearish candlestick ( Red )
2. Day 2 Bullish Candlestick ( Green )
3. The previous trend should be Bearish.
4. Real body is the main thing, the Green candle has to cover the
real body of the red candlestick.
A small Red candlestick is followed by a large green candlestick that
completely occupies the previous day candlestick.
A Green large body means the new direction has started with the
heavy force.
Confirmation :
1. A Gap down of Geen Candle is must and then it has to cover
the Real body of the Red candle. (That means fully covering
Red candle).
2. Focus on volume breakout of Day 2 candle only( above 20 MA
volume). Take Volume confirmation as the last step.

Information By: CityInvest Divish S.

Website : ​https://www.cityinvestwisely.com
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Conditions :
1. First, try to join the support line, and near about support you will
get the formation of the Bullish Engulfing.
Avoid This kind of Bullish Engulfing
How To Take Trade
Target Time Frame:
The timeframe for a target in all candlesticks reversals Thumb rule: It
will achieve target in next 8-12 candlesticks, (90% of Target get
achieved in 8-12 Candles) but if something going beyond 17
Candles then focus on the chart again or You have to Exit the
trade, But first check the chart if there is no trend then better to
exit.

Risk/Reward Ratio:
First go with 1:1 ratio ( Risk /Reward)
If your stop loss is Rs 5 then your target will be Rs 5 only that means
1:1

Focus on 1 Day & 1 Hour Candle Chart.

Buying will be in last 10-15 minutes as per 1 Day candle, &
Buying will be in last 2-3 minutes of 1 Hour Candle

Information By: CityInvest Divish S.

Website : ​https://www.cityinvestwisely.com
Facebook : ​www.facebook.com/cityinvestmentservices
Telegram Stocks: ​https://t.me/cityinvest
Telegram FNO: ​https://t.me/cityfno
Telegram Crypto : ​https://t.me/citycryptocurrency
Telegram Global Stocks :​ ​https://t.me/cityglobalstocks