The Bullish Engulfing Candlestick Pattern is a bullish reversal pattern, usually occurring at the bottom of a downtrend.
The Bullish Engulfing pattern is a two-day bullish pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses or "engulfs" the previous day's candlestick.
This trend suggests the bulls have taken control of a security's price movement from the bears.
The white body must engulf the body of the first black candlestick. After a decline, the second white candlestick begins to form when selling pressure causes the security to open below the previous close.
Buyers step in after the open and push prices above the previous open for a strong finish and potential short-term reversal.
Generally, the larger the white candlestick and the greater the engulfing, the more bullish the reversal.