what is a bullish engulfing pattern 
a bullish engulfing pattern is a white candlestick that closes higher than the previous day s opening after opening lower than the previous day s close it can be identified when a small black candlestick showing a bearish trend is followed the next day by a large white candlestick showing a bullish trend the body of which completely overlaps or engulfs the body of the previous day s candlestick a bullish engulfing pattern may be contrasted with a bearish engulfing pattern understanding a bullish engulfing patternthe bullish engulfing pattern is a two candle reversal pattern the second candle completely engulfs the real body of the first one without regard to the length of the tail shadows this pattern appears in a downtrend and is a combination of one dark candle followed by a larger hollow candle on the second day of the pattern the price opens lower than the previous low yet buying pressure pushes the price up to a higher level than the previous high culminating in an obvious win for the buyers it is advisable to enter a long position when the price moves higher than the high of the second engulfing candle in other words when the downtrend reversal is confirmed 