What is Engulfing Pattern?
Chart PatternsIntermediate
An engulfing pattern occurs when a candle's body completely covers the previous candle's body. A bullish engulfing (green covers red) at a low suggests reversal upward; a bearish engulfing (red covers green) at a high suggests reversal downward. Volume confirmation strengthens the signal.
Related terms: Candlestick Reversal Hammer