Bullish Engulfing candlestick pattern
A small bearish candle followed by a larger bullish candle whose body completely covers the first. Buyers overwhelmed the previous session's selling in a single day.
Illustrative shape. Real patterns vary in proportion.
How to identify a Bullish Engulfing
- Appears after a decline
- First candle is bearish (red)
- Second candle is bullish (green) and opens at or below the first's close
- Second body fully engulfs the first body
What the Bullish Engulfing tells you
The first session continues the downtrend. The second opens weak, then buyers take over so completely that price closes above where the prior session opened. Sentiment flipped within one candle.
How traders use it
The bigger the engulfing candle relative to recent candles, and the higher its volume, the more weight traders give it. A typical stop goes under the pattern's low; some traders enter on the close, others wait for follow-through.
Before taking any pattern-based trade, decide your stop first and size the position from it with the position size calculator.
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Frequently asked questions
Is the Bullish Engulfing bullish or bearish? +
The Bullish Engulfing is a bullish reversal pattern. A small bearish candle followed by a larger bullish candle whose body completely covers the first. Buyers overwhelmed the previous session's selling in a single day.
How reliable is the Bullish Engulfing? +
No candlestick pattern works every time. Patterns are more reliable when they form at a meaningful level (support, resistance, a moving average), after a clear trend, on higher volume, and when the next candle confirms them.
Do I need confirmation to trade the Bullish Engulfing? +
Most traders want it. Waiting for the next candle to move in the expected direction filters out many false signals, at the cost of a slightly worse entry price.
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