METATrading Academy

Technical analysis

Engulfing patternbadi candle jo pichli candle ko poori dhak le

A two-candle pattern where the second candle's body completely covers the first's in the opposite colour, hinting at a shift in control.

An engulfing pattern is made of two candlesticks. In a bullish engulfing, a small red candle is followed by a larger green candle whose body completely covers the previous body, showing that buyers overwhelmed the sellers of the prior period. A bearish engulfing is the reverse: a small green candle followed by a large red one. The pattern matters most after a clear move and at a meaningful level. If SBI has fallen for five days to a support near ₹760 and then prints a bullish engulfing candle on high volume, buyers may be stepping in. The same candle in the middle of a choppy range means little. Traders usually wait for the next candle to confirm direction and place a stop loss beyond the engulfing candle's low or high. Like all candle patterns, it describes probability, not certainty.

Lessons that use this term