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Nikita (SEBI RA)

20th Aug 2025 · SEBI-Registered Analyst

Engulfing Pattern – The Power Shift

📊 Engulfing = When a candle’s body completely covers the previous candle. ✅ Types: Bullish Engulfing: Appears at bottom → strong reversal potential. Bearish Engulfing: Appears at top → sign of profit booking or distribution. 📌 Example: Stock at ₹320 forms a small red candle → next day, a big green candle fully covers it → bullish engulfing → trend reversal likely. 🧠 Best results come when engulfing pattern is supported by above-average volume.

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