The Bullish Engulfing Line is a strongly bullish pattern if it occurs after a significant downtrend (i.e., it acts as a reversal pattern). It occurs when a small bearish (filled-in) line is engulfed by a large bullish (empty) line.
Engulfing Lines are one of the most important and powerful candle patterns. To form the pattern, today's range encloses or "engulfs" the prior day's range, thereby indicating great market strength in the direction of today's close.
From a psychological perspective, Engulfing Lines indicate that the market opened in the same direction as the prior day, but then reversed sentiment to close strongly in the opposite direction, overcoming and reversing yesterday's assumption regarding value.
If yesterday closed lower, a Bullish Engulfing Line will form when today's open is below yesterday's close abd today's close is above yesterday's open. The Bearish Line is just the opposite, where a black body enckises a previous white body.
_|_ | | | | | ### | | ### | | | | | |___| | Bullish Engulfing Line
http://www.equis.com/free/taaz/candlesticks.html
To install Finance::GeniusTrader, copy and paste the appropriate command in to your terminal.
cpanm
cpanm Finance::GeniusTrader
CPAN shell
perl -MCPAN -e shell install Finance::GeniusTrader
For more information on module installation, please visit the detailed CPAN module installation guide.