Bullish Engulfing Pattern is a technical analysis candlesticks charting pattern. This pattern occurs in the market which is in a clearly defined downtrend and signals higher prices to come.
The pattern consists of a small down (black or red) candlestick followed the next day by a large up (white or green) candlestick that engulfs the previous down candle’s body.
It is a bullish reversal pattern and sends an even stronger signal when the up candle engulfs the bodies of two or three previous candles. It shows buyers have overtaken the sellers and pushed the price up more aggressively than the sellers were able to push it down.