How to Read a Bullish Engulfing Pattern
A small bearish candle followed by a larger bullish candle that swallows it whole -- one of the most watched reversal signals.
CANDLESTICK PATTERNS
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2-candle pattern · Bullish reversal
A bullish engulfing pattern is a small bearish candle followed by a larger bullish candle whose body completely covers, or “engulfs,” the first candle’s body. Appearing after a downtrend, it shows buyers didn’t just stop the decline — they reversed it decisively within a single session.
It’s one of the more widely followed two-candle reversal signals precisely because the second candle actively erases the first rather than merely pausing it. It tends to carry more weight when the engulfing candle trades on noticeably higher volume than the candle it swallows, and when it forms at an existing support level rather than in the middle of open range.
Related patterns
- How to Read a Bearish Engulfing Pattern
- How to Read a Piercing Line Pattern
- How to Read a Bullish Harami
- How to Read a Three Outside Up Pattern
This article is educational only and isn’t a recommendation to trade any particular instrument or pattern — no candlestick pattern works in isolation. See the full candlestick guide for how patterns like this one fit into a broader approach.