Engulfing (Bullish & Bearish)
One candle swallows the prior one whole — the most decisive two-bar transfer of control.
Multi-Candle ReversalsIntermediate 5 min read· Lesson 7 of 10 in Candlestick Patterns
Psychology
Bullish version after a decline: sellers open it lower, then buyers not only recover the entire prior red bar but close beyond it — everyone who sold yesterday is underwater by tonight. Complete psychological reversal in two bars.
Recognition
Bar 2's BODY fully engulfs bar 1's body (wicks optional in most definitions), colors opposed, after a meaningful trend. Bigger engulfing body and higher volume = stronger.
Confirmation
The strongest engulfings need little confirmation, but a next-bar follow-through close seals it. Entry above the engulfing high (bullish), stop below its low.
Reliability
Among the most studied and most reliable two-bar patterns (~60%+ at genuine trend extremes with volume in several pattern studies). Mid-trend occurrences are much weaker — as always, location.
Scanner integration
This exact pattern is the BULLISH_ENGULFING named condition here — the chart above marks every real occurrence on the symbol's history (hover a dot to verify), and one click opens it in the Scanner or the Backtest panel to test it on any symbol yourself. That last step is the honest part most books skip.