Engulfing Pattern

Chart Patterns

A two-candle reversal pattern where the second candle completely engulfs the body of the first. A bullish engulfing (large green after small red) signals potential upward reversal; bearish engulfing signals the opposite.

Related Terms

Candlestick

A chart element showing the open, high, low, and close (OHLC) of a security for a specific time period.

Reversal

A change in the direction of price trend.

Harami

A two-candle pattern where the second candle's body is contained within the first candle's body.

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Multi-Candle Patterns

Level 2: Reading the Market · 22 min