Two-candle pattern

Bullish Engulfing candlestick pattern

Two candles that traders read as bullish reversal. How to recognize the Bullish Engulfing, what it suggests about buyers and sellers, and where it matters.

Bullish reversal2 candles

Faded candles show the trend before the pattern. The dashed box marks the pattern.

How to recognize it

  • Appears after a decline.
  • The first candle is bearish.
  • The second candle is bullish, and its body completely covers the first candle's body: it opens at or below the first close and closes above the first open. The shadows do not need to be covered.

What it suggests

The second session erased all of the previous session's selling and closed above where that selling started. Within one candle, control moved from sellers to buyers.

Where it matters

More meaningful when the second body is large compared with recent candles, at support, and on rising volume. A tiny first candle covered by a modest second one carries little weight.

Educational content only. Candlestick patterns describe past price action. They do not predict future prices, and they are not trading signals or investment advice. Prices in the diagrams are illustrative.

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