What are the bullish and bearish engulfing patterns in cryptocurrency trading?

Can you explain in detail what the bullish and bearish engulfing patterns are in cryptocurrency trading? How do they work and what do they indicate?

1 answers
- The bullish engulfing pattern is a popular candlestick pattern in cryptocurrency trading. It occurs when a small bearish candle is followed by a larger bullish candle that engulfs the previous candle. This pattern suggests a potential reversal in the price trend, with buyers gaining momentum. It indicates a shift from bearish sentiment to bullish sentiment, and traders often use it as a signal to enter long positions. Conversely, the bearish engulfing pattern is the opposite, with a small bullish candle followed by a larger bearish candle. This pattern suggests a potential reversal to a downtrend, with sellers gaining control. Traders may use it as a signal to enter short positions or close long positions.
Mar 20, 2022 · 3 years ago
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