What is a 'Bullish Pattern'
A pattern is a chart pattern that forms when a small black is followed by a large white that completely eclipses or "engulfs" the previous day's . The shadows or tails of the small are short, which enables the body of the large to cover the entire from the previous day.
BREAKING DOWN 'Bullish Pattern'
As implied in its name, this trend suggests the bulls have taken control of a security's price movement from the bears. This type of pattern usually accompanies a declining trend in a security, suggesting a low or end to a security's decline has occurred. However, as usual in analysis, the trader must take the preceding and following days' prices into account before making any decisions regarding the security.
candles indicate immense buying interest that swallows the range of the prior low and surpasses the highs. The buying action is frenzied as the candle usually closes at its highs with little to no upper wick. This in turn triggers more buyers who spill over into the next candle. If the next candle closes higher than the pattern, the next leg of the uptrend usually forms.
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