Bullish Engulfing
BullishA two-candle bullish reversal where a large green candle completely engulfs the previous red candle's body.
Pattern Visualization
How to Identify
- Previous candle is red (bearish)
- Current candle is green (bullish)
- Green body engulfs red body
- Appears after downtrend
Trading Tips
Strong reversal signal. Enter on break above pattern high. Stop below pattern low. Higher volume increases reliability.
A two-candle bullish reversal where a large green candle completely engulfs the previous red candle’s body. This powerful pattern shows a dramatic shift in sentiment from bearish to bullish as buyers overwhelm sellers.
When to Trade
The bullish engulfing is most effective after a sustained downtrend or at key support levels. The pattern signals that selling pressure has been exhausted and buyers are taking control. Enter long positions when price breaks above the pattern’s high.
Key Characteristics
- First Candle: Small to medium bearish (red) candle
- Second Candle: Large bullish (green) candle
- Engulfing: Green body completely covers red body
- Volume: Higher volume on engulfing candle strengthens signal
Success Rate
With an 88% historical success probability, the bullish engulfing is one of the most reliable reversal patterns. This high success rate makes it a favorite among both novice and professional traders.
Enhanced Signals
The pattern becomes even more powerful when:
- Volume on the engulfing candle is significantly higher
- It forms at a major support level or trendline
- Technical indicators show oversold conditions (RSI < 30)
- It appears after a long downtrend (exhaustion)