Bullish Engulfing Pattern
What it is:
How it works/Example:
The bullish engulfing pattern can be illustrated in the following manner using candlestick charting:
In this example, the smaller black candlestick is overshadowed by the larger white candlestick. This indicates the stock opened the second period lower than the previous close and tried to fall lower during the trading period. However, investors began to buy the stock, pushing the price sharply higher at the close and indicating bullish sentiment has taken over.