BULLISH ENGULFING LINES

This pattern is strongly bullish if it occurs after a significant downtrend (it may serve as a reversal pattern).

It occurs when a small bearish (filled-in) candle is engulfed by a large bullish (empty) candle.

Variation Example

In this example one candle (including wick) engulfs 10 smaller candles indicating there is still life in the upward movement. Not a good place to think of an entry point for going short!