Bullish Engulfing Pattern Candle Stick is a chart pattern where one sees a small black candlestick on previous day and subsequent day a large white candlestick is formed which is eclipsing or engulfing the previous day's candlestick.

The point to note is that the shadows or tails of the small candlestick are short, and as a net result the body of the large candlestick is able to cover the entire candlestick from the previous day.

Significance
The significance of this chart is that stock or index has been trending downward in the short and intermediate terms and have formed a bullish engulfing pattern and thus the probability of an upward reversal in prices has increased.


Click Here to Get Free Tips in Email to Make you a Professional Trader

One can see Bullish Engulfing Pattern Chart for an Indian Stock to understand the price fluctuations.