Technical
What is Engulfing (Bullish / Bearish)?
A candle whose body completely swallows the previous candle's body, in the opposite color β a one-session power reversal that erased the prior day entirely.
Formula
Bullish Engulfing: green body fully covers prior red body; Bearish: mirror after a rally
How to Interpret
Among the strongest-tested two-candle reversal patterns, particularly when the engulfing bar comes on elevated volume and at a meaningful level. The bigger the engulfed sequence, the stronger the statement.
Typical Ranges
Mid-trend engulfing bars (not at extremes) are routine volatility, not reversals. Body-only definitions ignore wicks, which occasionally misclassifies the true range winner.
Find Stocks Using This Signal
Screen US and Indian stocks by Engulfing in the Technical Screener.