A stricter definition of the bullish engulfing candle is being pushed as the only version that actually works for traders, a neutral but useful point for anyone using chart patterns.

• A real bullish engulfing candle has to trade below the low of the prior candle and then close above its high, wick included.
• Looser versions, which only require the body to cover the prior body, fail far more often.
• Technical analysis has no agreed dictionary, so traders using the same term can mean very different setups.
• The strict version means something because it shows sellers pushed to a new low and still lost control by the close.

Outlook: Traders using the loose definition should expect more false signals than those waiting for the full sweep-and-reclaim.