A bullish engulfing pattern is a candlestick pattern that forms when a small black candlestick the next day is followed by a large white candlestick whose body completely overlaps or engulfs the body of the previous day’s candlestick.
Bullish engulfing patterns are more likely to signal reversals when they are preceded by four or more black candles.
Investors should pay attention not only to the two candles that form a bullish engulfing pattern, but also to the previous candles.
The Accumulation/Distribution Line (A/D) measures the supply and demand of an asset or security by looking at where price closed in a period range and then multiplying that by volume.
The Directional Movement Index (DMI) is a technical indicator that measures both the strength and direction of price movement and is designed to reduce false signals.
Donchian Channels is a technical indicator designed to identify bullish and bearish extremes that encourage reversals, as well as up and down breakouts, breakouts and emerging trends.
The Double Exponential Moving Average (DEMA) is a type of technical indicator used to identify a potential uptrend or downtrend in the price of a stock or other asset.
Gann angles are based on a 45 degree angle, known as a 1:1 angle. Gann believed that the 45-degree angle is important and that trends above it are strong, while trends below it are weaker.
The Gann fan, created by early market specialist W. D. Gann, consists of a series of slanted lines. The trader chooses a starting point and the lines go into the future.
The Guppy Multiple Moving Average (GMMA) is a technical indicator that identifies changing trends, breakouts and trading opportunities in the price of an asset by combining two groups of moving averages (MA) with different time frames.
The Head and Shoulders pattern is a technical indicator with a graphical pattern of three peaks, where the two extremes are close in height, and the middle one is the highest.
Heikin-Ashi is a candlestick pattern technique that aims to reduce some of the market noise by creating a chart that emphasizes the trend direction better than conventional candlestick charts.