Bullish Engulfing Pattern

A bullish engulfing pattern is a two-candle reversal pattern in which a large green (bullish) candle completely engulfs the body of the preceding red (bearish) candle. It signals a potential shift in momentum from sellers to buyers, especially when it appears after a sustained downtrend or at a key support level. The pattern is stronger when the engulfing candle has above-average volume and when it occurs at a technically significant price zone such as a moving average or Fibonacci retracement level.