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  Bullish engulfing candlestick What Is a Bullish Engulfing Pattern? A bullish engulfing pattern is a green candlestick that closes higher than the previous day's opening after opening lower than the previous day's close.  It can be identified when a small red candlestick, showing a bearish trend, is followed the next day by a large green candlestick, showing a bullish trend, the body of which completely overlaps or engulfs the body of the previous day’s candlestick.   Bullish engulfing What Does a Bullish Engulfing Pattern Tell You? A bullish engulfing pattern is not to be interpreted as simply a green candlestick , representing upward price movement, following a red candlestick, representing downward price movement. For a bullish engulfing pattern to form, the stock must open at a lower price on Day 2 than it closed at on Day 1. If the price did not gap down, the body of the white candlestick would not have a chance to engulf the body of the previous day’s black candlestick.

Inverted Hammer candlesticks What does a inverted (inverse) hammer candlestick mean? Inverted hammer candlestick The inverted hammer candlestick pattern (or inverse hammer) is a candlestick that appears on a chart when there is pressure from buyers to push an asset’s price up.  It often appears at the bottom of a downtrend, signaling potential bullish reversal.

 What dose mean candlestick chart patterns and how dose it works? Nepse candlestick charts A candlestick chart (also called Japanese candlestick chart) is a style of financial chart used to describe price movements of a security , derivative , or c urrency . Candlestick Formations Candlestick formations The area between the open and the close is called the real body, price excursions above and below the real body are shadows (also called wicks). Wicks illustrate the highest and lowest traded prices of an asset during the time interval represented. The body illustrates the opening and closing trades. The price range is the distance between the top of the upper shadow and the bottom of the lower shadow moved through during the time frame of the candlestick. The range is calculated by subtracting the low price from the high price.