Bullish Engulfing pattern

A bullish engulfing pattern is a two-candle reversal formation that typically appears at the end of a downtrend, signaling potential bullish momentum. It occurs when a small bearish candle is followed by a larger bullish candle that completely engulfs the previous candle’s real body, indicating that buyers have taken control from the sellers. The pattern shows strong demand and a shift in market sentiment, especially if accompanied by higher trading volume, and is considered more reliable when it forms near a key support zone or after a prolonged decline.