Bullish engulfing

A Bullish Engulfing candlestick pattern forming at a trendline support zone is a strong bullish reversal signal. It indicates that after prices decline toward a well-established rising trendline, buyers step in aggressively and completely engulf the previous bearish candle, reflecting a shift in market sentiment from selling pressure to buying strength. This combination of dynamic support and a bullish engulfing pattern increases the probability of an upward move, especially when accompanied by higher trading volume or confirmation from the next bullish candle. Traders often view this setup as a potential buying opportunity while placing a stop-loss below the low of the engulfing candle or the trendline support.