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Bullish Engulfing

A bullish engulfing pattern uses two candles. The second green body takes back the prior red body and shows buyers overpowering the previous candle.

Small red candle followed by a larger green candle whose body covers the first body.

At A Glance

Name: Bullish Engulfing
Category: Bullish Candle Patterns
Type: Bullish Reversal
Number of candles: 2 candles
Typical context: After a pullback, selloff, or test near support.

How To Identify It

Body: First candle has a red body. Second candle has a larger green body.
Wicks: Wicks can vary, but the body relationship is the main visual clue.
Relationship: The green body opens below or near the prior body and closes above it, taking back the prior candle body.

Focus on the body relationship. The second candle should be a larger green body that covers the prior red body. The wicks can vary, but the body takeover is the main clue.

Context

This pattern is most useful to study after sellers have been in control and buyers suddenly take back the prior candle.

Bullish engulfing pattern forming after a downward move near a lower support area.

This pattern is most useful after sellers have been in control, especially near support, a prior low, or a pullback area. A bullish engulfing candle in the middle of chop is easier to overread.

What It Shows

The first candle shows sellers in control. The second candle changes the tone by closing strong enough to take back that red body, which tells you buyers did more than just pause the selling.

What To Watch Next

Watch whether price holds the green body and can continue above the engulfing candle high. Stronger reactions usually do not give back the whole body right away.

The read weakens if price falls back through the engulfing body. That means the buyer takeover did not hold.

Common Confusion

An outside bar breaks the prior high and low. An engulfing pattern focuses on the body covering the prior body.

Key Takeaway

Bullish engulfing shows buyers taking back the prior red candle body. It is strongest when that takeover happens after weakness and holds on the next candles.