Back to Engulfing Pattern
Bullish Engulfing
BullishVisual Example
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Quick Summary
Shape
Large bullish candle completely engulfs previous bearish candle body.
Common Trap
Trading every engulfing without checking location and trend context.
Context Rule
More significant at support after a decline; size relative to recent candles matters.
When It Fails
- •In strong downtrend without exhaustion (trend continuation likely)
- •Small engulfing body relative to recent average range
- •Low volume on engulfing candle (weak conviction)
- •Mid-range location with no support below
When It Works
- •At established support after extended decline
- •Engulfing candle significantly larger than average
- •Volume spike confirms buyer participation
- •Engulfs multiple prior candles (stronger signal)
Key Concepts
Understanding these methodology concepts will help you evaluate Bullish Engulfing setups more effectively:
Training Note: Pattern variants are educational classifications. Real-world price action rarely matches textbook definitions exactly. Always evaluate patterns in context of regime, location, and volume. This is not trading advice.