Bullish Engulfing Candle pattern overview
Repeatable patterns help in the recognition of the best entry points. The bullish engulfing candle pattern serves as the trend reversal prediction. You will find it at the bottom of a downtrend and so it informs about an upcoming uptrend.
The bullish engulfing candlesticks pattern is in the form of two candles. First one is red and short and the second one is green and long. The opening price of the green candle is lower or at the same level as the closing price of the previous red candle. And the closing price of the bullish one is higher or at a similar level to the opening price of the former bearish candle. This way the whole red candle is engulfed by the new green one. Hence the name.
The bullish engulfing candle pattern develops when the bears are at the exhaustion point. The prices are falling significantly. This is the time when the bulls are moving in to gain control over the market. They cause the price to rise and the trend to reverse.
The bullish engulfing candle pattern signals the impending uptrend. You should use this opportunity to open a long trade.
Trading with the bullish engulfing candle pattern on the Binomo platform
Log in to your Binomo account, set the chart and look for the bullish engulfing candle pattern. You expect it at the end of the downtrend. Therefore, once you notice it, you should open a long (buy) position.
On the above chart, there are three opportunities to enter the trade using the bullish engulfing candle pattern. You may observe that the green candles not always engulf fully the former red candle. But it is enough when the opening price of the bullish candle is almost at the same level as the closing price of the bearish one. More important is that the closing price of the green candle is higher than the opening of the previous one.
This is a chart for 5-minute candles which means that every candle lasts 5 minutes. When you identify the bullish engulfing pattern, it is possible that the market will go up. It is a good idea to open a trade for a price increase. The movement may not be immediate so to be more successful when trading with the 5-minute chart, you should rather use 15-30 minute expiry time.
Now you know how to discover the bullish engulfing candle pattern and read its signals. Remember that you should open long positions with it. Give it a try on the demo account on the Binomo platform. You can practice there for as long as you need so that you switch to the live account with confidence in your skills. Tell us in the comments section what your thoughts are about the bullish engulfing candle pattern.
All the best!