2-candle patternPossible bullish signal
Bullish Engulfing candlestick pattern
A larger green body covers the previous red body. Buyers have overtaken the previous candle’s selling.
Illustrative candles, not a live chart. Each candle covers one chart interval.
Spot it in 3 steps
What to check next
Look for follow-through above the pattern and nearby support. A large upper wick may show resistance.
Common mistake
A green candle that only covers the red wick, but not its full body, is not bullish engulfing.
Definition reference: Investopedia · Bullish engulfing