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1 of 1- Cannd
- legit member
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How do you define a bullish engulfing candle exactly
I keep hearing traders mention this pattern but I’m not entirely clear on the rules. Like, how much bigger does the second candle have to be? And does the wick count or only the body? Just want to make sure I’m reading it correctly when I see one.
- Fomkarto
- pink princess
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Re: How do you define a bullish engulfing candle exactly
That’s a good question. So, what is a bullish engulfing candle? It’s a two-candle pattern where the second candle is bullish and its body completely covers or “engulfs” the body of the first bearish candle. The wicks don’t matter as much — what really counts is that the bullish candle opens lower than the previous close and closes above the prior open. This shows a strong shift in momentum. Ideally, the pattern forms after a steady downtrend, because that’s where reversals are most likely. I usually wait for confirmation like a break above the high of the engulfing candle before entering.
- Cannd
- legit member
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Re: How do you define a bullish engulfing candle exactly
Got it. I wasn’t paying attention to the opening level before, just the candle size. Thanks for the clarity — now I see why it’s all about momentum reversal.
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