The Bullish Engulfing formation is a technical analysis chart pattern. Bullish Engulfing is a bullish formation, representing the opposite of the Bearish Engulfing formation. Three criteria establish a Bullish Engulfing formation:
- The market has to be in a clearly definable down-trend, even if the trend is short term.
- Of the 2 candlesticks in the formation, the second candle's real body must engulf the first candle's real body
- The second real body of the formation should be "up" while the first real body should be "down".