Bullish Engulfing
A green candle whose body completely covers the body of the previous red candle. Control shifts from sellers to buyers.
Where it matters
Strongest after a decline and at a support zone. After a sideways drift it is much weaker.
Faded candles are the trend before it, the band is the pattern, the dashed line is the level it formed at, and ✓ marks the confirming candle.
How to read it
- 01
How it forms
Candle 1 is red. Candle 2 opens at or below the close of candle 1 and closes above its open.
- 02
Where it matters
Strongest after a decline and at a support zone. After a sideways drift it is much weaker.
- 03
What confirms it
The next candle holds above the middle of the engulfing body, or closes above its high.
- 04
Where the idea is wrong
A close below the low of the engulfing candle.
- 05
What volume should do
Volume on the engulfing candle higher than on the candle before it supports the shift in control.
- 06
Common mistake
Reading every large green candle as an engulfing pattern without checking the trend and location.
Read it next
From the book
Read the full chapter in the book.
Chapter 10 of Trading Candlestick Patterns explains the Bullish Engulfing with real Indian market charts, volume context and stop-loss placement.
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Educational content only. A pattern describes what buyers and sellers did; it does not predict what price will do next. Not investment advice or a buy, sell or hold recommendation.