The bullish engulfing pattern ( bullish tsutsumi candlestick ), is a second day long green body candlestick that opens lower but closes higher than the prior day small red body candlestick. This show an engulf pattern by the second day's green candlestick to the previous day's candlestick. This formation is the equivalent of a bullish key reversal in the candlestick charts.

        Bullish engulfing pattern is strongly bullish if it is occurs after a significant down trend. The signal is to reverse to buying. This bullish engulfing pattern reflects a general change in the market sentiment and volume tends to be high. Traders must be aware that it is common for a neutral period to immediately follow this formation, because the market needs to digest the large one-day activity and reevaluate the new high price levels.

Important Criteria :

1. The first day's candlestick must be red color and indicates the down trend of the trading day.
2. The second day's candlestick must be green color, indicates that share price opens in lower price and closes higher.
3. The second day's body candlestick should be completely engulf the previous day's body, that is the opening price must lower and the closing price must higher than the prior day's trading.

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