Bullish Engulfing pattern

A Bullish Engulfing pattern is a powerful reversal candlestick pattern that appears at the end of a downtrend, signaling a potential shift from selling pressure to buying strength. It consists of two candles — the first is a small bearish (red) candle showing continued selling, and the second is a large bullish (green) candle that completely engulfs the body of the previous red candle. This indicates that buyers have taken control, overpowering the sellers. The larger the second candle and the higher the volume, the stronger the bullish reversal signal. Traders often see it as a sign to enter long positions or confirm trend reversal with other indicators.