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THREETREND RESEARCH

13th Sep · SEBI-Registered Analyst

why bullish engulfing pattern failed sometimes?

Weak Market Context – A bullish engulfing is powerful when formed at strong support zones or after prolonged selling. In your chart, it appeared in a mid-downtrend without a strong base, so buyers lacked conviction. Low Follow-up Volume – A genuine reversal needs strong bullish volume after the engulfing. Here, the next candles lacked strong green volume, meaning buyers did not step in aggressively. Downtrend Dominance – The larger trend was still bearish (series of lower highs and lower lows). One bullish candle alone could not reverse the broader sentiment. No Confirmation – A bullish engulfing needs confirmation from the next session closing above the engulfing candle high. In this case, prices stalled and moved sideways, showing no follow-through strength. In short: The pattern failed because it appeared against the prevailing downtrend, without strong support or volume confirmation, so sellers regained control quickly.

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