Engulfing Candlestick Pattern


Enulfing pattern is candlestick pattern that formed by two candlesticks with different color, this could be black candlestick and white candlestick or white candlestick and black candlestick.
Engulfing candlestick pattern formed by black candlestick and white candlestick is called Bullish Engulfing candlestick pattern. Engulfing candlestick pattern that formed by white candlestick and black candlestick is called Bearish engulfing candlestick pattern.
Color of the first candlestick in engulfing pattern represent of the preceded trend. If Engulfing candlestick pattern is preceded by bullish trend or uptrend, the first candlestick is white and if the emergence of engulfing pattern is preceded by bearish trend or downtrend , then the first candlestick is black.
The second candlestick always has longer body than first candlestick body. Body of the first candlestick is within the coverage area of the second candlestick body. The length of the upper and lower shadow is not important.
In the Japanese language, Engulfing pattern is also known as Tsutsum and Daki which means humiliating. Why ? because the length of the second candlestick body seemed to swallow the first candlestick body and it looks hopeless / humiliate the first candlestick to maintain the preceded trend.

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