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TERM OF THE DAY

A bullish engulfing pattern is a white 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 black candlestick, showing a bearish trend, is followed the next day by a large white candlestick, showing a bullish trend, the body of which completely overlaps or engulfs the body of the previous day’s candlestick.

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A white candlestick depicts a period where the security's price has closed at a higher level than where it had opened. Read more

Red Candlestick: Definition, What It Tells You, and How to Use It

A red candlestick indicates that the closing price of a security is lower than both the open and prior close. Candlesticks of other colors can indicate other data. Read more

Real Body: Meaning, Example, Limitations

The real body is the wide part of a candle, on a candlestick chart, representing the area between the opening and closing prices over a specific time period. Read more

Bearish Engulfing Pattern: Definition and Example of How To Use

A bearish engulfing pattern indicates lower prices to come and is composed of an up candle followed by an even larger down candle. The strong selling shows the momentum has shifted to the downside. Read more

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