What the patterns look like
Made-up prices. Shape example only, not a detected signal.
Read left to right. Each candle shows one period's opening, highest, lowest, and closing price. These examples leave out volume and the full earlier trend.
Bullish engulfing
Hollow body: close above open.
Filled body: close below open.
The shaded strip marks the last candle.
- Previous body: 100–104. Final body: 99–106. The final body covers the previous body.
- An upward candle closes above its open. It does not prove the next period will rise.
- Final open
- 99
- Final high
- 107
- Final low
- 98
- Final close
- 106
Made-up prices. Shape example only, not a detected signal.
Bearish engulfing
Hollow body: close above open.
Filled body: close below open.
The shaded strip marks the last candle.
- Previous body: 100–104. Final body: 98–105. Compare the bodies, not just the colours.
- The example high is 106. A later move above it would weaken this bearish case.
- Final open
- 105
- Final high
- 106
- Final low
- 97
- Final close
- 98
Made-up prices. Shape example only, not a detected signal.
Read the two bodies first
The candle body joins the open and close. A wick extends to the high or low. Bullish means an upward case; bearish means a downward case. Neither word states what price must do next.
In the bullish example, the earlier candle opens at 104 and closes at 100. The next candle opens at 99 and closes at 106. Its body covers the whole earlier body. In the bearish example, the earlier body runs from 100 to 104. The next candle opens at 105 and closes at 98.
- Find the earlier candle, then the signal candle. Do not compare two unrelated periods.
- Compare open-to-close ranges. A long wick alone does not make a body engulfing pattern.
- Check the earlier trend. The site looks for bullish engulfing after selling and bearish engulfing after buying.
Do not confuse engulfing with a hammer
A hammer describes one candle with a long lower wick. Bullish engulfing describes the relationship between two candle bodies. A shooting star and bearish engulfing are also different checks.
More than one pattern can appear near the same price. That does not turn separate labels into independent proof of a future move.
Follow the example beyond its shape
The bullish example has a low of 98. A later move below that low would weaken its case. The bearish example has a high of 106. A move above that high would weaken its case. Weak later price action can also matter.
The diagrams omit volume and the full trend history. They illustrate body coverage, not a completed scanner test.
Current PatternLedger rules
These rule summaries are shared with the Pattern Reference. Strict means that more checks pass. It is not a promise of profit.
Bullish engulfing
- Look for
- Bullish body covers the prior bearish body after selling pressure.
- Strict needs
- Full body coverage, expansion, strong close, and established downtrend.
- What makes it invalid
- Below the engulfing low or weak follow-through.
Bearish engulfing
- Look for
- Bearish body covers the prior bullish body after buying pressure.
- Strict needs
- Full body coverage, expansion, weak close, and established uptrend.
- What makes it invalid
- Above the engulfing high or weak follow-through.
Check the real signal
- Use the displayed signal date and the right Daily or Weekly chart.
- Read the current direction, Strict or Loose label, and what makes the signal invalid.
- Compare matching backtest evidence. A diagram, score, or past result does not guarantee a future return.