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 smaller bearish candle, followed by a larger bullish candle that completely engulfs the previous one. This pattern indicates that buyers have gained control, suggesting a shift in market sentiment. Traders often look for this pattern near support levels or after a prolonged downtrend. The appearance of a bullish engulfing pattern can prompt investors to consider entering long positions, anticipating that prices may rise as demand increases.