Final answer:
The bullish engulfing bar involves a first bullish candle followed by a second doji candle. Thus the Option C is correct C) Bullish, doji
Step-by-step explanation:
The bullish engulfing bar consists of two candlesticks, the first one is bullish, and the second one is a doji. In this pattern, the first candlestick is a smaller bearish candle, followed by a larger bullish candle that completely engulfs the previous one.
A bullish engulfing pattern is a bullish reversal pattern that signals a potential change in trend from bearish to bullish. The first candlestick represents a short-term pullback or hesitation in the prevailing downtrend, reflected by a bearish candle.
The second candlestick, which is bullish, opens lower than the close of the first candle but closes higher than the open of the first candle, forming a larger body that engulfs the bearish candle.
The doji in the second part suggests indecision or a potential equilibrium between buyers and sellers.
Traders often interpret the bullish engulfing pattern as a signal that buyers are gaining control, and it may indicate a shift in sentiment.
However, confirmation from additional technical indicators and price action is typically sought before making trading decisions based solely on this pattern. It's important to consider the context of the overall market conditions and other relevant factors.