Candlestick Patterns→ Pattern Detail

Bullish Engulfing

A large bullish candle that engulfs the previous bearish candle

A bullish engulfing pattern occurs when a bullish candle's body completely engulfs the previous bearish candle's body. It shows buyers overwhelming sellers - a strong reversal signal at support.

How to Recognize

  • Green candle body engulfs prior red candle body
  • Appears at support after decline
  • Larger candle shows strong buying
  • Volume higher on engulfing candle

How to Avoid

  • Must appear at meaningful support
  • Don't trade in mid-range
  • Higher volume = stronger signal
  • Wait for next candle if uncertain