Engulfing is a reversal pattern composed of two candlesticks. Bullish Engulfment comes at the end of a bearish period, where the first candlestick is red and the second is green. Bear Engulf is the inverse of Bull Engulf, its first candle is green and the second is red.
- The first candlestick is bearish.
- The second candlestick is a bullish one whose opening is below the previous close.
- The first candlestick is bullish.
- The second candlestick is a bearish one whose open is above the previous close.