Bullish Engulfing / 陽の包み線・陽線つつみ
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A two-candlestick pattern appearing during a downtrend where the second candle's large bullish body completely engulfs the first candle's small bearish body. It indicates that selling pressure has weakened and buyers have seized control, serving as a reversal signal to the upside.
Enter long after confirming the engulfing pattern (second candle's close), at the open of the next candle. Or enter when price exceeds the second candle's high.
Target the nearest resistance line, or project 1.5-2 times the engulfing pattern's range (second candle's high to low) upward.
Place a stop-loss slightly below the engulfing pattern's low (second candle's low).
Significantly increased volume on the second bullish candle is important. Greater volume increase indicates stronger buyer participation.