Bullish Engulfing Pattern
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 red candlestick, showing a bearish trend, is followed the next day by a large yellow 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.
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