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Candles scan

Bullish Engulfing Screener

This scan finds stocks where today's green candle body fully covers yesterday's red candle body, with RSI (14) below 45 so the pattern comes after a dip.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: bullish engulfing and rsi below 45

  1. Bullish engulfing
  2. RSI(14) < 45

Find US stocks where today shows a bullish engulfing candle; and RSI (14) is below 45.

Formula view
pattern(beng)
AND rsi(14) < 45
Example chart: Bullish engulfing after a dipDaily candles of a made-up sample stock with Lower panel: RSI (14), dotted lines at 30, 45 and 70. The shaded day is the day the scan fired.
  • Lower panel: RSI (14), dotted lines at 30, 45 and 70
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

A bullish engulfing pattern is a two-candle reversal signal. Yesterday sellers were in control (a red candle). Today the stock opened at or below yesterday's close and closed at or above yesterday's open, swallowing the whole red body. Buyers took control within one day.

Chalni's exact rule also needs today's body to be bigger than yesterday's. The RSI rule makes sure the stock was weak before, which is where reversal patterns matter.

How traders use it

  • Patterns at support, such as an old low or a rising average, mean more.
  • A common stop is below the low of the two candles.
  • High volume on the engulfing day adds weight.

Watch out for

  • In strong downtrends, engulfing patterns often fail.
  • Small candles swallowing even smaller ones mean little. Look at the size of the move.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

How reliable is the bullish engulfing pattern?

It varies by market and setup. It is more useful after a clear decline and at support. Chalni lets you test it on data it never saw before you trust it.

Does the engulfing candle need to cover the wicks?

Most definitions, Chalni's included, only need the body to be covered, not the wicks.

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