A bullish engulfing pattern is a strong reversal signal that usually appears after a downtrend, indicating a shift from selling pressure to buying strength. It consists of two candles: the first is a small bearish (red) candle showing weak sellers, followed by a larger bullish (green) candle that completely engulfs the previous candle’s body, reflecting aggressive buying. This pattern suggests that buyers have taken control and are likely to push prices higher, especially when it forms near a support zone, demand area, or after a prolonged decline. Confirmation through volume expansion or a breakout above nearby resistance increases the reliability of this pattern.