Candlestick Patterns

Candlestick Pattern - Bullish Engulfing

Bullish engulfing is on the most popular candlestick pattern traded in all over the world. You need to keep below things in mind while trading bullish engulfing pattern to be profitable. 

• Bullish engulfing pattern must be traded at support level only. It will probably not work if you get it in middle of the chart. 
• Bullish engulfing pattern will work nicely if it appears at double bottom.
• You must consider long term trend before entering in to bullish engulfing pattern. In short, take long entry only if long term trend is up.
• Bullish engulfing pattern can be traded at dynamic support level like 20 MA/EMA, 50 MA/EMA, 100 MA/EMA or 200 MA/EMA.
• Bullish engulfing pattern can be traded at static support like horizontal support line, trend line, channel bottom and double or triple bottom. 
• It is good practice to check volume bar after forming bullish engulfing pattern. If volumes are higher than usual after forming bullish engulfing, probably the move will sustain for longer so volume plays an important role in trading bullish engulfing pattern. 
• www.aflcode.com has many afls which identifies the bullish engulfing pattern for you. Just search and get the perfect afl for you but it is better to get your eyes trained on plain chart to identify bullish engulfing pattern. 

Bullish Engulfing