Bullish engulfing
An up candle that swallows the previous down candle
What it is
Two candles: a down candle, then an up candle whose body completely covers it. The second period erased the first and closed above its open.
What it may suggest
A decisive shift within the period. After a pullback into support it may suggest buyers took control.
Where it fails
Size matters. An engulfing candle on thin volume is far weaker than one on expanding volume. It also frequently marks a short-lived bounce rather than a turn.
Also called engulfing candle, bullish engulfing pattern.
More candlesticks
- Bearish engulfingA down candle that swallows the previous up candle
- MarubozuFull body, almost no wicks: one-sided period
- Spinning topSmall body, wicks both sides
- Morning starDown candle, small pause, up candle
- Evening starUp candle, small pause, down candle
- Inside barA candle contained entirely by the one before it
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