Question

When a bullish engulfing candle forms at the end of a __________, the _________ is much more ___________ as it represents a _____________.

A) Uptrend, bullish reversal, likely
B) Downtrend, bearish reversal, unlikely
C) Range-bound market, consolidation, probable
D) Volatile market, uncertainty, unpredictable

Answer 1

When a bullish engulfing candle forms at the end of an uptrend, it signals a bullish reversal and is likely to lead to further price increases.

Step-by-step explanation:

When a bullish engulfing candle forms at the end of an uptrend, the bullish reversal is much more likely as it represents a shift in market sentiment from bearish to bullish. The bullish engulfing candle is a strong signal that buying pressure has overtaken selling pressure, indicating that the price may continue to rise.