Demand and Supply - Basics – Bearish / Bullish engulfing
•This pattern is formed when a large full bodied candle completely covers the earlier full bodied candle
•Demand / Supply psychology (Bullish engulfing)
- Market is in down trend making lower lows
- In its final push it catapult with force pulling in more sellers
- Next candle market opens lower, however buyers emerge in full force and take the price higher above previous candle close.
- Trend changes and buyers are in control now
•This pattern has higher probability of winning when seen at previous support / resistances and with high volumes on first candle.