Bullish Engulfing
A two-candle reversal where a large up candle completely engulfs the prior down candle's body — a sign momentum flipped to buyers.
In a bullish engulfing, a small red (down) candle is followed by a larger green (up) candle whose body opens at or below the prior close and closes above the prior open, fully covering it. The shift from selling to strong buying in one session is the message.
It carries more weight after a pullback or at support, on rising volume. Like all candle signals it's strongest when it agrees with the larger trend and structure.
How it has actually played out
- Bullish Engulfing: across 7,424 signals on US stocks in the last 150 days, price was higher a week later 48.4% of the time (+3.5 pts vs. an ordinary session) and higher a month later 46.0% (+5.0 pts).
Measured from the signal-day close, no stops or costs, versus every session of the same stocks over the same window. A base rate, not a prediction.
On StockSetups
Bullish engulfing is in the StockSetups bullish candlestick set; when it confirms a chart-pattern breakout or retest, it strengthens the setup's read on the dossier.
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