A candle stick is a type of a price chart analysis that displays the high, low, open and closing

prices of a security for a specific period or simply put, is a type of a price chart analysis that
shows the movement of the market i.e the high, low, open and closing price of a security for a
specific period of time.
Element Of A Candle Stick
There are basically two element of a candle stick which are as follows
1. The complexity of a candle stick pattern
2. And the type of a candle stick pattern
The complexity of a candle stick pattern; this refers to how many candle stick forms the pattern
i.e the candle stick can be simple and as well as complex in pattern

The simple candle stick pattern; as the name implies (simple) which means simple when
interpreting and this pattern is formed by simple or single candle stick and which gives a signal
about what the market is about to do next.

The complex candle stick pattern; as the name implies (complex) which means not simple, this
pattern is formed by two or more candle stick and which also give signal about what the market
is about to do next

The type of a candle stick pattern; there are three types of which are as follows

1. The reversal pattern

2. The continuation pattern and the
3. Neutral pattern

The Reversal Pattern; these are pattern that interpret or indicate price will change it current
direction to the opposite direction, meaning that price will be going in one direction and when
the reversal pattern appears it will change to the opposite direction. The reversal pattern can be
Bullish and as well as Bearish, that is to say, bullish reversal pattern and bearish reversal pattern

The Continuation Pattern; these are pattern that interpret or indicate price will continue
moving in it current direction, continuation pattern can also be bullish and bearish, that is to say,
the bullish continuation pattern indicate price will continue to go up and bearish continuation
pattern indicate price will continue to down.

The neutral pattern; this pattern indicate a momentary stop in price, that is to say, it does not
indicate the future movement of price or market

Note; that the combination of the element gives the classification of candle sticks for example
when classifying a pattern, this can be written by joining together the element {complexity +
type} of the pattern
For example, Simple Bullish Reversal Pattern which means price or market will reverse it
current direction to up.

Complex Bearish Continuation Pattern which means two or more bearish candles formed to
indicate price or market will continue moving down the chart until a reversal bullish pattern
appear

THE ENGULFING BAR CANDLE STICK PATTERN

The engulfing bar candle stick pattern; this pattern is a 2- candle stick pattern, where the second
candle stick completely engulf the first candle stick. It is usually form after uptrend or
downtrend.

Example of Engulfing bar.

The engulfing pattern is complex candle stick reversal pattern… the engulfing pattern is
classified into two which are as follows

1. The bullish engulfing pattern and

2. The bearish engulfing pattern

The bullish engulfing pattern: this pattern consist of two bodies and it has the following
characteristics

 The first body has a smaller body and is a bearish candle stick being a continuation of
the downward swing that precede
 the second body has a bullish and which completely engulf the first one ( bearish
candle stick)

Typical example of bullish Engulfing bar patte0rn

Significant of bullish engulfing pattern

The bullish engulfing bar pattern indicate or tells us that the market under control of sellers, and
buyers will take control of the market. The first price bar (the smaller body) a declining selling
power while the engulfing bar show an increasing buying power.

The Bearish Engulfing Pattern: this pattern also consist of two body, and consist of the
following characteristic

1. the first candle stick ha a smaller body and is usually bullish being continuation of the
preceding upward price swing’
2. the second body completely engulf the first one and is usually a bearish candle stick

Typical example of Bearish bar candle pattern

Significant Of Bearish Engulfing Bar Pattern

When bearish engulfing pattern occur at the end of an uptrend, this tells us that the buyer are
engulf by the sellers which signal a trend reversal... Meaning that buyers are not still in control of
the market and sellers are trying to push the market to go down.