Bullish Engulfing
Also known as: Bullish Engulfing Pattern
A large green candle completely engulfs the body of the previous red one – after a downtrend, a strong bullish reversal signal.
What it looks like
First a smaller red candle, then a green one whose body fully covers the open and close of the red one.
What it means
Buyers have suddenly taken control and bought up the entire prior range.
How it is traded
Long entry at the close of the engulfing candle or on a break of its high; stop below the shared low.
Where & when – and the limits
The larger the green candle relative to the red and the higher the volume, the stronger. Most reliable after a clear downtrend.
Related patterns
Education, not investment advice. Candlestick patterns are hints, not guarantees – they need confirmation and context (trend, levels, volume). Always manage risk with stop-loss and position size.
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