In this video, I will explain about the engulfing candle stick patterns, with the help of which, you can be able to understand the hidden secrets of the market. There are mainly two types of the engulfing candles. First is bullish engulfing candle and second is bearish engulfing candle. When after a small red candle, a big green candle is formed and this green candle completely cover the body of the previous red candle then it is called the bullish engulfing candle. In this type of pattern, first we have a small red candle and this red candle with small body indicates that the sellers are not so interested right now and they are getting out. Now at the opening of the next candle, the buyers are so aggressive and they keep buying the stock. Thus, the price of the stock increases and the body of the next candle becomes big. So, the next candle becomes able to close above the high of the previous candle. Thus, we can see a sudden momentum in the stock and we can get a chance to enter at the high of the bullish candle.

Now we understand about the bearish engulfing candle. In this type of pattern, first we have a small green candle and this green candle with small body indicates that the buyers are not so interested right now and they are getting out. Now at the opening of the next candle, the sellers are so aggressive and they keep selling the stock. Thus, the price of the stock decreases and the body of the next candle becomes big. So, the next candle becomes able to close below the low of the previous candle. Thus, we get a chance to enter at the low of the bearish candle. For the better entry and exit, we must require the help of the resistance and support levels. Rest of the thing you can see in the video.

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