Engulfing pattern
An engulfing pattern consists of two candles where the second candle’s real body fully covers the first candle’s body and has the opposite direction. A bullish version can appear after a decline and a bearish version after a rise; neither guarantees a reversal, and the shadows need not be engulfed.
In a hypothetical bullish engulfing pattern, a falling candle opens at 105 and closes at 103. The next opens at 102 and closes at 106, enclosing the earlier body.
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