Engulfing Pattern (Doji)
Bullish Reversal

Interpretation

A third candle, hollow and closing higher than the second candle is confirmation of the reversal. See Three Outside Up, a bullish reversal pattern.

Starting in an uptrend, a third filled candle, closing lower than the second candle may be Engulfing, a bearish reversal pattern. See engulfing for a definition of the term


Similar or Inverse Patterns
Three Outside Up Bullish Reversal
Engulfing Pattern (Doji) Bearish Reversal
Engulfing Pattern (Filled) Bullish Reversal

Recognition Guidance
Starts with a downtrend, the first candle is a doji (or filled) and completely engulfed by the second, hollow candle.

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