PATTERN: Reversal

TREND: Bullish

RELIABILITY:Moderate

How to identify it:

·  A long black day occurs

·  The second day is a white that completely engulfs the real body of the first day

 What it Means:
Occurring in a downtrend, the Engulfing depicts an opening at a new low, followed by a

high buy-in that closes at or above the previous day's open. This signifies that the

downtrend has lost momentum and the bulls may be gaining strength. The Engulfing

indicator is also the first two days of the Three Outside patterns.