Bullish Engulfing
A Bullish Engulfing pattern is a candlestick chart formation that signals a potential reversal in a downtrend. It consists of two candles: the first is a small bearish candle, followed by a larger bullish candle that completely engulfs the body of the previous candle. This pattern indicates that buyers are gaining strength and may lead to a price increase.
Traders often look for the Bullish Engulfing pattern as a buying opportunity. It is typically more significant when it appears after a prolonged downtrend, suggesting a shift in market sentiment. This pattern is commonly used in technical analysis to make informed trading decisions.