Overview
An engulfing pattern occurs when the body of the second candlestick is bigger than the first, its top is higher than the top of the first, and the bottom of the body is below the bottom of the first. That is, it engulfs the first candle. Typically, it is only considered an enfulfing if it reverses the direction of the first candle.
The engulfing pattern is seen to be an indicator that the current trend is reversing.