Engulfing Pattern

Also called: bullish engulfing, bearish engulfing

A two-candle reversal where the second candle's body completely engulfs the first — strong shift in momentum.

Bullish engulfing: down candle followed by a larger up candle that engulfs it. Bearish engulfing: up candle followed by a larger down candle.

The size of the engulfing candle matters — a marginal engulfing in a quiet session is weak; a wide-range engulfing on heavy session volume is significant.