Can this be considered a bullish engufing?
It is hourly chart, there is certain amount of downward move the previous day
Not really. You need to tick 3 boxes before identifying a pattern as a bullish engulfing pattern -
- Prior trend should be a downtrend, which is true
- P1 should be a large red candle, which is true
- P3 should be a large green candle to the extent where the losses on P1 is recovered by the gains made in P2. This condition is not true, hence, the set of candles you are pointing to is not a valid bullish engulfing pattern.
I’ve discussed this in a lot more detail here.
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Yes, It is bullish engulfing candle.
Sir, I get that P3 (considering the gap down candle to be P1) is not covering P1,
However in Bullish engulfing we only consider P2 and P3 (two candles, one red and green) and P3 covers the loss of P2,
considering that, wouldn’t this count as a bullish engulfing,