Bullish Engulfing Pattern
The bullish engulfing is a two-candle reversal pattern that signals potential upward momentum.
Last reviewed: 2026-03-06
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Overview
The bullish engulfing forms when a green candle's body completely engulfs the body of the previous red candle. It suggests buyers have overwhelmed sellers. The pattern is more reliable at support levels and in downtrends.
How To Identify
- First candle: red (bearish), any size.
- Second candle: green (bullish), opens at or below prior close, closes above prior open.
- The green body must fully contain the red body. Wicks can extend beyond.
Trading Tip
Wait for confirmation: a close above the engulfing candle's high, or a pullback to the pattern area that holds. Use a stop loss below the pattern low.
Knowledge check
1 of 3In a bullish engulfing, the second candle is:
FAQ
Common questions about this topic.
What is the success rate of bullish engulfing?
Varies by market and context. Works better at key levels and with trend confirmation.
What is the bearish engulfing?
The opposite: a red candle engulfs a green candle, signaling potential downward reversal.
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