Patterns › Candlestick
Bullish Engulfing pattern
A bullish engulfing is a two-candle pattern in which an up candle's body covers the body of the prior down candle, signaling a shift in momentum from sellers to buyers.
Stocks forming it now ↓
What does a bullish engulfing look like?
Our scanner checks it as a setup where all of these hold:
- A down day followed by an up day. If the down day's body is tiny (a doji), it must be the third down day in a row or later.
- The up day's body covers the down day's body, with a small tolerance of a tenth of an average daily range at each end. Wicks are ignored.
- It signals at the close of the up day.
- A prior downtrend and volume aren't required.
How reliable is the bullish engulfing pattern?
In our most recent backtest (March – September 2026, out-of-sample), 64.0% of the 649 highest-scoring bullish engulfing setups, out of 14,054 studied, were trading higher two weeks later.
How are entry, stop and target set?
Every pick comes with an entry zone, price targets and a stop. The targets come from how far past bullish engulfing setups actually moved, not from a textbook projection of the pattern's height. The stop scales with the stock's own average daily range, so a volatile stock gets a wider stop than a quiet one.
How is it different from a three white soldiers?
Both are bullish candlestick reversals, but a bullish engulfing is two candles — one large up candle engulfing the prior down candle — while three white soldiers is three consecutive up candles.
Stocks forming a bullish engulfing now
All free bullish engulfing examples →
Free examples from our scans. Subscribers get every bullish engulfing setup, 1 in the latest scan, by 6 AM ET.
Other candlestick patterns
Get every bullish engulfing setup before the open
Tickers, entry zones, targets and stops for every pattern we detect, in your inbox by 6 AM ET.
Start Free Trial →No credit card required · 14 days free