Forex: Bullish Engulfing Pattern

Bullish Engulfing Pattern 
The Bullish Engulfing Candlestick Pattern is a bullish reversal pattern, usually occuring at the bottom of a downtrend.
The pattern consists of two Candlesticks:

1. Smaller Bearish Candle (Day 1) 
2. Larger Bullish Candle (Day 2)  

The bearish candle real body of Day 1 is usually contained within the real body of the bullish candle of Day 2. On Day 2, the market gaps down; however, the bears do not get very far before bulls take over and push prices higher, filling in the gap down from the morning's open and pushing prices past the previous day's open. The power of the Bullish Engulfing Pattern comes from the incredible change of sentiment from a bearish gap down in the morning, to a large bullish real body candle that closes at the highs of the day. Bears have overstayed their welcome and bulls have taken control of the market.

The chart below shows an example of a Bullish Engulfing Pattern occuring at the end of a downtrend:

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