Japanese candlesticks

Candlestick patterns

Long lines

Marubozu

Doji

Intra-day doji formation

Dragonfly doji

Hammer

Inverted hammer

Gravestone doji

Hanging man

Dark cloud cover

Piercing line

Engulfing

· Bullish engulfing

· Intra-day bullish engulfing

· Bearish engulfing

· Intra-day bearish engulfing

Star formations

· Morning star

· Evening star

· Evening star

· Shooting star

Harami

· Bearish harami

· Bullish harami

· Harami cross


Engulfing Candlesticks:

Engulfing patterns are where the body of the second candlestick 'engulfs' the first. They often follow or complete doji, hammer or gravestone patterns and signal reversal in the short-term trend.

BULLISH ENGULFING PATTERN

It is a chart pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses or "engulfs" the previous day's candlestick. The shadows or tails of the small candlestick are short, which enables the body of the large candlestick to cover the entire candlestick from the previous day.

Investopedia Says:

As implied in its name, this trend suggests that the bulls have taken control of a security’s price movement from the bears. This type of pattern usually accompanies a declining trend in a security, suggesting that a low or end to a security's decline has occurred. However, as usual in candlestick analysis, the trader must take the preceding and following days' prices into account before making any decisions regarding the security.

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