High Engulfing: When the Bulls Make the Decisive Return

The Candle that Changes Everything

Have you ever seen that moment on the chart when everything changes all of a sudden? That's exactly what the Bullish Engulfing represents - two days where the story completely reverses.

How It Works in Practice

Imagine this: on the first day, sellers are in total control. It opens, drops, closes red. The market is in free fall. But then comes the second day and… boom - it opens lower, it seems like it's going to get worse, and out of nowhere, buying pressure explodes. It closes so high that it completely engulfs the red body of the previous day.

The second candle ( green ) literally engulfs the first candle ( red ). It opened below the previous close but closed above the previous open. This is the pattern.

What is Happening in the Market Mind

First day: the bears win. Everyone is pessimistic.

Second day: starts the same (gap down), but then everything changes. Buyers come in strong, selling pressure is subdued, and the price shoots up.

The psychological shift is clear: seller exhaustion + explosive buyer confidence = potential trend reversal.

Extra Signs That Matter

• If the shadows (pavios) of the second candle also engulf those of the first: the pattern becomes much stronger.
• Location matters: after a real drop, it works better
• Confirmation is everything: a green candle after this reinforces the signal
• High volume during formation? Even more convincing

TL;DR

Bullish Engulfing = a battle won by the bulls after a period dominated by the bears. It is a sign of a strong bullish reversal, but it should not be viewed in isolation - analyze it in the larger market context and with complementary indicators to avoid getting burned.