Engulfing Candlestick Pattern Explained: Bullish and Bearish
Learn how the bullish and bearish engulfing candlestick patterns are structured, and what they're commonly discussed as reflecting.
- 7 min read
- For beginners
- Educational
- Ders 5 / 7
- 1Key Japanese Candlestick Patterns
- 2Doji Candlestick Pattern Explained: A Complete Guide
- 3Hammer and Inverted Hammer Explained
- 4Shooting Star Candlestick Explained
- 5Engulfing Candlestick Pattern Explained: Bullish and Bearish
- 6Morning Star and Evening Star Explained
- 7Context and Confirmation, Not Standalone Signals
The engulfing pattern is a two-candle formation, the first multi-candle pattern covered in this unit, building on the single-candle patterns from the previous lessons.
This is general educational content describing a commonly referenced pattern, not a guaranteed signal.
What Is an Engulfing Pattern?
An engulfing pattern occurs when a candle's body completely covers (engulfs) the body of the preceding candle, with the second candle being the opposite color of the first. This two-candle relationship distinguishes it from the single-candle patterns covered earlier in this unit.
Bullish Engulfing
A bullish engulfing pattern occurs when a smaller bearish candle is followed by a larger bullish candle whose body completely covers the first candle's body. This is commonly discussed in the context of appearing after a downtrend, reflecting a potential shift from seller to buyer control.
Bearish Engulfing
A bearish engulfing pattern occurs when a smaller bullish candle is followed by a larger bearish candle whose body completely covers the first candle's body. This is commonly discussed in the context of appearing after an uptrend, reflecting a potential shift from buyer to seller control.
Why This Pattern Is Sometimes Discussed as More Decisive
Because it involves two candles showing a clear, complete reversal in body size and direction, an engulfing pattern is sometimes discussed as reflecting a more decisive shift than a single-candle pattern alone. However, as covered in this unit's final lesson, this does not mean the pattern is guaranteed to be followed by a specific price outcome — context and confirmation remain essential.
Summary
An engulfing pattern occurs when a candle's body completely covers the preceding, opposite-colored candle's body — bullish engulfing (smaller bearish candle followed by larger bullish candle) is discussed after downtrends, while bearish engulfing (smaller bullish candle followed by larger bearish candle) is discussed after uptrends. While sometimes viewed as more decisive than single-candle patterns, engulfing patterns still require the context and confirmation covered in this unit's final lesson.
Frequently Asked Questions
A two-candle pattern where the second candle's body completely covers the body of the preceding, opposite-colored candle.
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