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Shaly Gupta

15th Sep · SEBI Registration INH000016108

A Bullish Engulfing is a two-candle bullish reversal pattern

FIRSTCRY
A Bullish Engulfing is a two-candle bullish reversal pattern that generally appears after a decline. The first candle is bearish, followed by a larger bullish candle whose real body completely engulfs the previous bearish candle’s body. It indicates that buyers have taken control from sellers and can signal a potential upward reversal, especially when formed near a strong support or demand zone. Confirmation through higher volume and a close above the engulfing candle’s high can improve the setup. Morning Star Pattern A Morning Star is a three-candle bullish reversal pattern that typically forms after a downtrend. It consists of a large bearish candle, a small-bodied candle showing indecision, and a strong bullish candle that closes well into the first candle’s body. It suggests that selling pressure is weakening and buyers are gaining control. The pattern is more significant when it forms near major support, a swing low, or trendline support. In simple terms: Bullish Engulfing → 2-candle bullish reversal signal. Morning Star → 3-candle bullish reversal signal. Both become stronger when supported by volume + important support zone + confirmation candle.

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