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

1 answers

• Mills McGuireJul 13, 2022 · 3 years ago
  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.
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