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Nikita (SEBI RA)

4th Sep · SEBI-Registered Analyst

Bullish Engulfing – Strong Reversal Signal

📊 A Bullish Engulfing is a 2-candle reversal pattern. ✅ Formation: 1️⃣ First candle – Small red (weak selling). 2️⃣ Second candle – Big green that completely engulfs the body of the red candle. ✅ Meaning: Buyers overpower sellers, momentum shifts bullish. 📌 Example: Stock falls to ₹320, small red candle forms. Next day, strong green candle opens lower at ₹318 but closes ₹332 (engulfing red body) → bullish reversal. 🧠 Rule: Best when formed at support zones with rising volume.

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