Technical Definition
A three-candle bullish reversal pattern where a Bullish Engulfing pattern is followed by a bullish confirmation candle, representing a forceful transition to buyer control.
Sellers lose control abruptly, buyers take over aggressively, and then buyers confirm strength. This pattern is essentially a Bullish Engulfing pattern followed by a bullish confirmation candle.
Sellers lose control abruptly.
Market Psychology
Context
Market in downtrend Sellers are confident Buyers are defensive or absent
Continuation
Sellers continue pushing prices lower Bearish sentiment remains intact
Engulfing
Buyers enter aggressively Short covering accelerates Sellers lose control quickly
Confirmation
Buyers return with confidence New buyers participate Price acceptance occurs at higher levels
Pattern Anatomy
First Candle (Bearish)
Moderate to large bearish real body, confirms selling pressure.
Second Candle (Bullish Engulfing)
Large bullish candle completely engulfing the first candle body, signaling aggressive buyer entry.
Third Candle (Bullish Confirmation)
Bullish candle closing above the second candle’s close, confirming sustained buyer dominance.
Pattern Rules
Appears after a decline
Reversal context is required.
First candle is bearish
Shows ongoing selling.
Second candle is bullish and larger
Power shift.
Second candle engulfs first body
Engulfing structure.
Third candle is bullish
Confirmation flow.
Third candle closes above second candle close
Confirms sustained momentum.
Signal Confirmation
- Strength and size of the third candle
- Price holding above the engulfing candle’s midpoint
- Alignment with support zones
- Improving market structure