Understanding the Bullish Engulfing Pattern

The bullish engulfing pattern is a two-candlestick reversal pattern often seen at the bottom of a downtrend. The first candle is a small bearish candle, fully engulfed by a larger bullish candle that follows it. This suggests a significant shift in momentum, with buyers overcoming sellers and potentially indicating the start of an upward move. While powerful, it's always best to confirm with other indicators or subsequent price action before making a trade.