Engulfing
A candle that fully engulfs the previous body. Strong reversal signal.
Neutral
Difficulty: ●●○○○
Reliability: 7/10
One of the most reliable patterns.
- Bullish engulfing: a green candle larger than and engulfing the prior red body → strong rally signal
- Bearish engulfing: a red candle engulfs the prior green → strong drop ahead
When to look
After a clear trend. Higher volume on engulfing candle is ideal.
Confirmation
Pattern confirms at close of the engulfing candle.