A bullish engulfing pattern is a two-candle reversal pattern that appears at the end of a downtrend, signaling a potential shift from selling pressure to buying momentum. It forms when a small bearish (red) candle is followed by a larger bullish (green) candle that completely engulfs the body of the previous candle. This means the second candle opens lower and closes higher than the previous candle’s range, showing strong buyer dominance. The pattern indicates that buyers have taken control, and if confirmed with higher volume or a breakout above the bullish candle’s high, it often marks the beginning of an upward move or trend reversal.