The Bullish engulfing candlestick pattern is a candle stick pattern seen in the stock market. This is a two-day candle stick pattern observed in between the candle sticks.
This is a bullish candle stick pattern.
How Bullish engulfing candle stick pattern forms
The bullish engulfing pattern is a two-day time frame pattern. Below is the image is shown.
Day 1 = On day 1 the last candle stick will be red. Again this candle stick will be very short.
Day 2 = On day 2 the first candle stick will be a green candle stick that opens below the previous day’s red candle stick but covers the entire red candle stick with a huge body.
What happens after the formation of the Bullish Engulfing candlestick pattern
A bullish trend reversal can be seen after the formation of this pattern. In the bullish trend reversal, after the formation of the long green candle, we can see that there is an upside move.
The Bullish engulfing candlestick pattern is widely seen in stocks wherever there is a steep decline.