📊 Signal
Bullish reversal
A big green candle completely engulfs the prior red body — buyers overwhelm sellers.
🕯️ Anatomy
Green body > prior red body
The second candle opens at/below the prior close and closes above the prior open.
📍 Forms after
A downtrend
Most powerful at the bottom of a decline or at support.
✅ Reliability
Strong & immediate
One of the more reliable reversals — especially on high volume.
Trading Rules — Bullish Engulfing
01Engulfment. The green body must fully cover the previous candle's body (wicks don't count).
02Context. Only a reversal signal after a downtrend.
03Volume helps. Heavy volume on the engulfing candle adds conviction.
04Bigger is better. The more decisively it engulfs, the stronger the signal.
05Entry. Buy the close or a minor pullback, stop below the pattern low.
For educational purposes only. Not financial advice. Always manage risk with position sizing and never risk more than you can afford to lose.