Bullish Engulfing
A Bullish Engulfing pattern is a two-candle bullish reversal where a large bullish candle's body completely engulfs the smaller bearish candle before it.
Buyers decisively overwhelmed sellers within a single session, completely reversing the prior candle's losses — one of the most widely recognized reversal signals in technical analysis.
- Forms after a downtrend.
- First candle is a small-bodied bearish candle.
- Second candle is bullish and its body opens below (or at) and closes above the first candle's entire body.
- Many traders enter on the close of the engulfing candle or on a retest of its body.
- Stop-loss is commonly placed below the low of the engulfing candle.
- A larger engulfing candle relative to recent price action tends to carry more weight.
केवल शैक्षणिक — वित्तीय सलाह नहीं। किसी भी कैंडलस्टिक पैटर्न को व्यापक बाज़ार संदर्भ, जोखिम प्रबंधन और अपनी खुद की ट्रेडिंग योजना के साथ मिलाकर देखें।
सामान्य प्रश्न
It's rated among the more reliable single-setup reversal patterns, especially when it appears after an extended downtrend and on above-average volume.
It's more actionable than most single-candle patterns, but many traders still like to see the next candle hold above the engulfing candle's open.