Japanese Candlestick Patterns - Bullish and Bearish Engulfing

The first of the japanese candlestick patterns that require two separate candlesticks (i.e. the double candlestick patterns) to be explained are the bullish and bearish engulfing (bullish and bearish tsutsumi). The bullish engulfing and the bearish engulfing are relatively easy to identify on a price chart (as long as single candlestick patterns are understood), and in the appropriate contexts they can be used as trade entry and trade exit signals.