Engulfing patterns are Japanese candlestick formations consisting of two consecutive candles. They occur when a second candle, opposite in color to the first, has a body that completely engulfs the body of the previous candle. There are two types: Bullish Engulfing and Bearish Engulfing patterns.
A Bullish Engulfing pattern generally appears after a downward move: a bullish candle engulfs the body of the previous bearish candle, suggesting that buyers may be regaining control. Conversely, a Bearish Engulfing pattern generally forms after an upward move: a bearish candle engulfs the body of the previous bullish candle, suggesting increasing selling pressure.
The Engulfing Indicator automatically identifies Bullish and Bearish Engulfing patterns directly on your ProRealTime charts.
It makes these Japanese candlestick patterns easier to identify without having to examine each candle individually. Bullish Engulfing patterns are marked with a green arrow below the candle, while Bearish Engulfing patterns are indicated by a red arrow above the candle.
Numerous parameters allow you to customize the display according to your own criteria. All settings can be adjusted directly from the indicator's “Configuration” menu in ProRealTime, without modifying the code.
To scan the markets for stocks displaying Bullish or Bearish Engulfing patterns, use our Engulfing Screeners.
Adjustable validation criteria:
Available filters:
Video presentation:
Details of available settings:
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Disclaimer
Our proposed tools (indicators and screeners) are not investment advices but tools allowing everyone to find specific graphic configurations. The automated trading systems offered have been developed and optimised using historical data; however, past performance is no guarantee of future results. Investing in the financial markets involves risks up to and including the total loss of capital. The user of the proposed tools understands and accepts that the use of these tools is under his sole and entire responsibility. P2C Trading declines all responsibility in the use of the tools and the consequences that would result.
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