Bullish Engulfing Stocks
Candlestick Cheat Sheet
The following is a list of bullish engulfing stocks. Bullish Engulfing is a candlestick pattern that produces a buy signal.
When a bullish engulfing pattern occurs on a down trend, it often indicates a reversal trend is coming allowing a trader to get in early.
Bullish Engulfing Screener
The bullish engulfing screener shows a list of the bullish engulfing stocks today trading on NYSE, NASDAQ and AMEX.
9/22/2023
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Bullish Engulfing
The following figure shows how a Bullish Engulfing pattern is formed. It is a two candle reversal pattern where the second candle completely engulfs the first one.
- The stock is on a down trend
- A small black candlestick is followed by a large white candlestick, where the body of the black candlestick is completely covered by the body of the white candlestick.
- When the bullish engulfing pattern occurs on a downtrend, it signals a reversal signal meaning the stock may already be trading at the bottom.
- If the volume is higher than usual on the second day where the bullish engulfing occurs, the stronger the signal is.
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Bullish Engulfing Trading Strategy
Let's look at an example of real chart with a Bullish Engulfing pattern.
The stock JPM formed a Bullish Engulfing pattern on May 14.
- The stock was in a downtrend prior to May 14 on the daily chart.
- The body of the white candlestick completely engulfs the body of the black candlestick of May 13.
- If we were to trade this stock, we would buy this stock the next day or on May 15.
- Place a stop loss right below the low of the May 14 or the low of the day where the bullish engulfing pattern occurs. Stop loss is a must thing to do to protect ourselves from losses when the pattern fails. Remember, a pattern is only an indication, there is no guarantee the stock will go up.
- Set a price target of when you want to exit the trade.
- In this case, the stock worked out pretty well. JPM has risen since the Bullish Engulfing pattern was formed on May 14.
The stock SUM was another stock that did well recently following a Bullish Engulfing pattern on May 14. The stock was in a downtrend prior to May 14 and the trend reversed since the pattern was formed.
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Final Words
Bullish Engulfing Pattern is especially useful when combine with strong volume or other technical indicators. Conservative traders should wait for a positive confirmation day after a bullish engulfing pattern occurs.
Just like any other technical indicator, the Bullish Engulfing pattern gives you a signal and it is a signal only. The pattern doesn't work every time, therefore you must always have a stop loss in placed for your trades.
To learn more about the bullish engulfing pattern or other candlestick patterns, read the following
Top Candlestick Patterns - learn the top 10 candlestick patterns.
How to trade Bullish Engulfing pattern - learn more about the bullish engulfing pattern.
Swing Trading For Beginners - learn the top 4 swing trading strategies that work.
Bullish Engulfing Stocks Today
The bullish engulfing screener scans the stock market each day and get you the list of bullish stocks today. To scan for other candlestick patterns, check out our candlestick scanner.
To find bullish stocks based on other technical indicators, visit trending stocks, momentum stocks, top 100 stocks today and 52 week high stocks lists.
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