Bullish Reversal Pattern
After a downward trend a reversal takes place beginning with an engulfing green candlestick.

 

Characteristics

1. After a downward trend a Engulfing Green candlestick comes in.

2. This green candlestick is followed by another bullish green candlestick which opens at or above the previous green candlestick close.

 

***********************************************

This is a strong bearish reversal pattern that has high reliability.
***********************************************

 

Confirmation
A third green candlestick appearing within the body of the previous candlestick is good.

 

If the third green candlestick appears at or above the 50 percent mark this is even better.

 

If the next green body candlestick begins above the last this is a great sign that trend reversal is in play.

 

 

1. This candlestick formation shows a definite change in seller sentiment. If you are short you should have already been out.

 

2. If you are short and you have not yet gotton out you may get another opportunity to get out in a little pullback because of the sudden change this can often occur before a surge upwards. This is not good on your mind and you often get burned. Learn to get out when you have the chance otherwise you will suffer both mentally and financially.

 

3. This is also a great sign to go long. If a level of support forms think about riding the wave up.