P
PipsGrowth

Key Takeaways

Success Rate:75%
Difficulty:Beginner
Strength:
R:R Ratio:1:2.5
📈

Bullish Engulfing

bullish reversalVery High Reliability2 Candles

A two-candle reversal pattern where a large bullish candle completely engulfs the previous bearish candle. One of the most reliable reversal patterns.

Market Psychology

The bulls have overwhelmed the bears, completely reversing the previous session decline and establishing control.

Candle Structure

1st2nd

Trading Setup Example

Entry, stop loss, and take profit levels.

How to Trade the Bullish Engulfing PatternTake Profit📥 EntryStop LossPatternConfirmEnterBUYPatternConfirmEnterSL/TP

Always wait for pattern confirmation before entering a trade.

Where This Pattern Appears

Trend context and market position.

DowntrendBullish EngulfingReversal ↑

Appears at the bottom of a downtrend, signals bullish reversal.

How to Identify

1

First candle is bearish (red/black)

2

Second candle is bullish (green/white) and completely engulfs the first

3

Second candle body opens below and closes above first candle body

4

Appears at the bottom of a downtrend

Confirmation Signals

High volume on engulfing candle
RSI showing oversold conditions
Pattern forms at key support level
Bullish MACD crossover

Trading Strategy

📥 Entry

Enter long at the close of the engulfing candle or on next candle open

🛑 Stop Loss

Place stop loss below the engulfing pattern low

🎯 Take Profit

Target previous swing highs or use Fibonacci extensions

⚖️ Risk/Reward

1:2.5

Common Mistakes to Avoid

Not waiting for the engulfing candle to close
Trading against the major trend
Ignoring volume confirmation
Setting stop loss too tight

Pro Tips

💡Larger engulfing candle relative to first = stronger signal
💡Higher volume on engulfing candle confirms strength
💡More reliable when appearing at key support levels

Best Timeframes

4HDailyWeekly

Pattern Variations

Perfect engulfing (opens at low, closes at high)
Engulfing with gap down open
Engulfing at key support level
آخر تحديث: ٢٩ ديسمبر ٢٠٢٤

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Frequently Asked Questions