WSTCSTPAPR A bullish engulfing pattern is a two-candlestick reversal formation that appears after a downtrend and signals a potential shift from selling pressure to buying strength. The first candle is a small bearish candle, followed by a larger bullish candle whose real body completely engulfs the previous candle’s body, showing that buyers have overpowered sellers. This pattern indicates strong demand at lower levels and growing bullish momentum. Its reliability increases when it forms near a support zone, after a clear decline, with higher volume on the engulfing candle, and when the next candle closes above the engulfing candle’s high for confirmation.
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