JoymistaWhat Is an Engulfing Candlestick Pattern?
An engulfing pattern is two candles: the second has the opposite colour and its body fully covers the first one’s body. A bullish engulfing appears after a fall, a bearish one after a rise.
Explained
A bullish engulfing means buyers did not just stop the fall but closed above the previous candle’s open. It carries more weight at a clear support or resistance zone and less in the middle of a choppy move.
Example
Example with made-up numbersA bearish candle from 105 to 102, then a bullish one from 101.5 to 106. The second body (101.5–106) covers the first (102–105), a bullish engulfing.
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Related terms
- CandlestickA Japanese candlestick draws four prices for a period: the open and close (the body) and…
- HammerA hammer is a candle with a small body at the top of its range and a long lower wick at…
- Support and ResistanceSupport is a price zone where falls stopped before because buyers took over; resistance…
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Open in JoymistaEducational content, not investment advice.