Unit 4 · Candlestick Pattern Encyclopedia

Engulfing Patterns

Lesson 2 of 108 min6 exercises

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When One Candle Swallows Another

Engulfing patterns are powerful two-candle reversal patterns. The second candle completely "engulfs" the body of the first, showing a dramatic shift in momentum.

BULLISH ENGULFING

Bullish Engulfing - Green candle swallows red
Bullish Engulfing - Green candle swallows red
Requirements:
1. First candle is bearish (red)
2. Second candle is bullish (green)
3. Second body COMPLETELY covers first body

What it means: Sellers had control, then buyers overwhelmed them completely.
Signal: Strong bullish reversal.
Nickname: "The Swallow" or "Bull Trap Escape"