Swing Engulfing – Bullish

Developed at Definedge.

A bullish engulfing candle is one where the current price completely engulfs the body of the previous candle. With Renko charts, we plot a series of bricks which show price swings. When a swing move completely retraces the previous move, which was a swing breakout, then it is known as a swing engulfing.

Swing engulfing is, in effect, an extended strike-back pattern.

Bullish swing engulfing:

Point A – Price forms a bearish swing breakout here.
Point B – Bullish swing breakout is completed in the immediate next move.

Prashant Shah introduced this pattern in his book on Renko charts.

Click here to know more about the pattern.

This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

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