bullish engulfing pattern


A bullish engulfing pattern usually occurs at the bottom of a downtrend, and forms when a small black candlestick is followed by a large white candlestick that completely “engulfs” the body of the previous day’s candlestick. The bullish engulfing pattern indicates a change in sentiment from a bearish gap down in the morning, to a large real white body candle that closes at the highs of the day. Buyers step in after the open and take control of the market. Generally, the greater the engulfing, the more bullish is the reversal. Large volume during the period in which the white candle forms, is an important confirmation of the short-term reversal.