DUAL candlestick patterns!
To identify dual Japanese candlestick patterns, you need to look for specific formations that consist of TWO candlesticks in total.
There are two types of Engulfing candles: Bullish Engulfing and Bearish Engulfing.
The Bullish Engulfing pattern is a two-candlestick reversal pattern that signals a strong up move may occur.
It happens when a bearish candle is immediately followed by a larger bullish candle.
This second candle “engulfs” the bearish candle.
This means buyers are flexing their muscles and that there could be a strong up move after a recent downtrend or a period of consolidation.
On the other hand, the Bearish Engulfing pattern is the opposite of the bullish pattern.
This type of candlestick pattern occurs when the bullish candle immediately follows a bearish candle that completely “engulfs” it.
This means that sellers overpowered the buyers and that a strong move down could happen.