The Bullish Engulfing pattern is a two candlesticks pattern where the real body of the second candle completely engulfs the first day’s candlestick. The second day opens below the close of the first day for a gap down open; however, Bulls reject the gap down open and buy on the dip which rallies to close above the open of the first day. This damages the confidence of Bears to take the market lower.

Bullish Engulfing candlestick pattern

<< Back to Glossary Index