// TRADING TERMINOLOGY
What is Engulfing Pattern?
A reversal pattern that can be bearish or bullish depending on whether it appears at the end of an uptrend or downtrend.
In-Depth Explanation
A Bullish Engulfing pattern occurs when a small red candle is followed by a large green candle that completely "engulfs" the previous one, signaling a shift in momentum.
Practical Example
"A Bearish Engulfing pattern on the Daily chart leads to a week-long sell-off in the FTSE 100."
Related Terminology
Tradeable Instruments Affected
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