Candlestick Patterns · Bullish
Bullish Engulfing
A bullish candle whose body covers the prior bearish body.
The second candle opens at or below the prior close and finishes above the prior open. Buyers took back the whole previous body.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- The first candle is bearish.
- The second candle is bullish.
- The second body fully covers the first body.
Market context
The usual setting is a decline. In a flat market the same two candles are less informative.
Entry example
An example entry is above the engulfing candle's high.
Stop-loss example
An example stop is below the engulfing candle's low.
Target example
An example target is the start of the decline.
Common mistakes
- Counting a candle that only covers the wick, not the real body.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.