Bearish Engulfing pattern
The WHS Divergence Candlestick strategy is based by default on the Bearish Engulfing pattern. This pattern is defined by a small bullish candle with limited shadows followed by a bearish candle whose body "engulfs" the small bullish one. The Trade Direction is always short.
Table of patterns
|Bearish Engulfing||Evening Star||Three Crows||Outside Down|
|It consists of a small bullish candle with short shadows or tails followed by a large bearish candle that engulfs the small one.
||It comes after an uptrend. It is characterized by a long bullish body candle followed by a gapped up small body candle, then a down close with the close below the midpoint of the first candle.||A bearish reversal pattern consisting of three consecutive long bearish bodies which close at or near the low and open within the body of the bar.
||This pattern begins as a Bearish Engulfing pattern.
In order to complete this pattern, a third candle for the next period is also bearish and closes below the previous bar close.
|Bullish Engulfing||Morning Star||Three Soldiers||Outside Up|
|It forms when a small bearish candle is followed by a large bullish candle that completely engulfs the previous candle.
||It comes after a downtrend. It is characterized by a long bearish body candle followed by a gapped down small body candle, then a down up with the close below the midpoint of the first candle.||A bullish reversal pattern consisting of three consecutive long white bodies. Each should open within the previous body and the close should be near the high of the bar.
||The Three Outside Up pattern begins as a Bullish Engulfing pattern.
In order to complete this pattern, a third candle for the next period is also bullish and closes above the previous bar close.