A two-candle pattern where a large green candle completely engulfs the prior red candle's body — buyers took over decisively.
After a down-move, a small bearish candle is followed by a bullish candle whose body opens at or below the prior close and closes above the prior open, wrapping it entirely.
It signals a shift from selling to buying pressure and a potential bottom or reversal. The larger the engulfing candle relative to the prior one, the stronger the read.
Two candles: first bearish (red), second bullish (green) with a body that fully covers the first body. Best when it appears at support or after a clear decline.
Never trade a single candle in isolation. It only carries weight with context — location at a key level, the prevailing trend, and confirmation from the next candle or from volume. On its own it is a hint, not a signal.
Reading a definition is step one. Chart Bound drills you on spotting Bullish Engulfing and dozens of other setups on live candles, and the Daily gives you one fresh chart to read every day. Free to start.