How to recognize it
- Appears after a decline.
- The first candle is long and bearish.
- The second candle opens below the first candle's close (classically below its low), then closes above the midpoint of the first body, but below the first open.
What it suggests
The open continued the selling, but buyers took over during the session and recovered more than half of the previous session's loss.
Where it matters
The deeper the second close reaches into the first body, the stronger the pattern. A close above the first open would make it a bullish engulfing.
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.