The Bullish Engulfing is a two-candle pattern that appears at the bottom of a downtrend. The first candle is bearish (red). The second is a larger bullish candle whose real body fully engulfs the first body, opening below the first close and closing above its open.
09
PATTERN ID
SignalBullish ▲
Reliability★★★★☆
Win Rate63%
Expected move+4–9%
TimeframeDaily / weekly
ConfirmationSelf-confirming
The short answer
What is a Bullish Engulfing candle?
The Bullish Engulfing (Bullish Engulfing) is a two-candle pattern that appears at the bottom of a downtrend. The first candle is bearish (red). The second is a larger bullish candle whose real body fully engulfs the first body, opening below the first close and closing above its open.
How to spot a Bullish Engulfing candle
Both candles sit inside a clear downtrend. The second candle opens at or below the first close. The second candle closes above the first open.
Is a Bullish Engulfing candle a bullish or bearish signal?
A bullish reversal pattern made of two candles. Confirmation: self-confirming. Reference success rate: 63%. Did it show up in the last session? This page lists the symbols that formed it on the last completed daily candle, updated after every close. Which symbols formed it? →
Pattern illustration
A large green body that fully engulfs the previous red body
How to identify the pattern
Step-by-step checks
Both candles sit inside a clear downtrend
The second candle opens at or below the first candle's close
The second candle closes above the first candle's open
The second body fully contains the first body
Higher volume on the bullish candle noticeably strengthens the signal
Trading psychology
The power struggle between buyers and sellers
Bulls beat bears in a single session. The engulfing candle doesn't just recover the previous session's losses, it goes past them. A decisive shift that shows buying pressure overtook selling pressure at this level.
Outlook and confirmation
Entry conditions and expected price move
Self-confirming, no extra candle needed
Especially strong at major support levels or after RSI readings in oversold territory. Historical range +4–9% within 5–12 trading days. Self-confirming, no extra candle needed.
Ideal setting for the pattern
Oversold + support
Suggested timeframe: daily / weekly
Where to find it on the platform
Bullish Engulfing on the last completed daily candle
Candle of 13 Oct 2026 · list updated 13 Oct 2026 23:10 UTC
After each session closes, we classify the daily candle of SPY by its shape. When it takes this shape, its name appears there along with its body and shadow ratios.
Shows the daily-timeframe candles for any symbol on the platform's list. You identify the pattern by eye: the terminal does not name it.
How it is traded in practice
An engulfing candle gets its strength from relative volume. A green body that fully engulfs yesterday's body on above-average volume says large buyers have retaken the session. Entry would be at the close of the engulfing candle or on the first mild pullback toward its midpoint, with the stop below its low, which makes that candle the whole decision unit. The pattern gets stronger the smaller the engulfed candle and the wider the engulfing one, with two short shadows.
Common mistake
Calling any big green candle an engulfing. The condition is that the body engulfs the body, not just size, and location is a second condition. An engulfing after a long rally is not a bottom signal and may be the peak of enthusiasm. Entering right at the close with no look at the distance to the nearest resistance buys a valid pattern with a poor risk/reward ratio.
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