2-candle pattern · bullish bias
Bullish Engulfing candlestick pattern
A bullish engulfing pattern is a two-candle reversal: a red candle followed by a larger green candle whose body completely covers the red body. It shows buyers overwhelming the prior session's selling.
How to identify it
- A prior decline.
- A red candle.
- A green candle that opens at or below the red close and closes above the red open.
- The green body fully covers the red body; wicks are not required to be covered.
Where it matters: Appears after a decline, near a low.
What it means
A shift from sellers to buyers within two sessions.
What confirms it
A following candle that holds above the engulfing candle's midpoint or closes higher.
What invalidates it
A close below the low of the engulfing pattern.
Common mistakes
- Counting it in the middle of a range or an uptrend.
- Accepting a green candle that only engulfs the wicks or barely covers the red body.
Frequently asked questions
Is bullish engulfing a strong signal?
It is one of the better-known reversal candles, especially after a clear decline and near support, but it still needs confirmation.
Do the wicks need to be engulfed?
Usually only the bodies are compared.
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Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.