Engulfing Pattern
A two-candle reversal pattern where the second candle completely engulfs the first.
Full Definition
An engulfing pattern consists of two candles where the second completely engulfs the body of the first. A bullish engulfing (green candle engulfs red) at the bottom of a downtrend signals potential reversal upward. A bearish engulfing (red engulfs green) at the top of an uptrend signals potential reversal downward. Volume adds confirmation.