Updated: Nov 22, 2022
The bullish engulfing pattern is identified on our platform as bullish_engulfing. Investopedia describes the pattern as a "two-candle reversal pattern".
The pattern occurs when a previous downward 'Red' candle is immediately followed by an upwards 'Green' candle. The body of the Green candle must be larger than the previous Red candle.
For our detection algorithm, we've added an additional condition ensuring that the 'close' price of the Red candle is below the 20 EMA (Exponential Moving Average).
Here's an image demonstrating what this looks like:
Our platform provides the Bullish Engulfing Pattern detection for all supported timeframes.
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