Bullish engulfing
A rising candle whose body fully covers the body of the previous falling candle.
What it shows
A bullish engulfing pattern has two bars. The first is a down bar. The second is an up bar that opens at or below the first bar's close and closes at or above the first bar's open. It appears after a decline.
The second body 'engulfs' the first. The pattern shows a swing in one bar from selling to buying pressure.
How we find it
The same code that draws it on your chart follows these steps, with the same result every time.
- Bar 1: close below open, after a fall.
- Bar 2: close above open.
- Bar 2 open ≤ bar 1 close and bar 2 close ≥ bar 1 open.
- Mark both bars.
Starting values: Bars 2; Prior fall 5 bars. These are proposed and will be tuned on real price data before launch.
How to read it
- The gold zone covers the two bars.
- The second candle is taller than the first.
- Candles before it fall.
Status labels you may see
| Label | What it means |
|---|---|
| Today | Rule met with the last two bars. |
| Recently | Within the last 5 bars. |
| None | Not found. |
What cancels it
Nothing cancels it.
What traders check next
- Size of the second bar.
- Volume on the second bar.
- The next bar.
Limits
- Common.
- Outcomes vary.
- Bulkowski's tests found modest results.
Try it in forecastviz
- Open any ticker and choose Candlestick patterns → Bullish engulfing in the left menu.
- Switch between 3M, 6M to see how the picture changes.
- Compare with Bearish engulfing and Piercing line on the same chart.
Questions
Is it a Buy signal?
No. It is a two-bar shape.
Do wicks count?
Only the bodies are compared.
Related trends
Further reading
- Nison, Japanese Candlestick Charting Techniques
- Bulkowski, Encyclopedia of Candlestick Charts
- Morris, Candlestick Charting Explained
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.