// TRADING TERMINOLOGY

What is Engulfing Candle?

A reversal pattern consisting of two candlesticks where the second candle completely "engulfs" the body of the first.

In-Depth Explanation

A Bullish Engulfing candle at the bottom of a trend is a strong buy signal, while a Bearish Engulfing candle at the top is a strong sell signal.

"A massive bearish engulfing candle on the daily chart ended the three-week rally."

A reversal pattern that can be bearish or bullish depending on whether it appears at the end of an uptrend or downtrend.

The movement of a security's price plotted over time.

A market condition where prices are rising or expected to rise.

A market condition where prices are falling or expected to fall.

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