Engulfing Patterns

Learn Engulfing Patterns — part of our Price Action series on Trading Bite. Free trading education for Pakistan, India & Gulf traders. Educational use only; not financial advice.

One candle consumes the prior

Bullish engulfing — down candle followed by a larger up candle whose body wraps the prior body. Suggests shift in control to buyers at that location.

Bearish engulfing — opposite at resistance.

Bullish engulfing Bearish engulfing

Combine with trend bias: bullish engulfing in an uptrend pullback often aligns better than fighting a strong downtrend.