Bullish Engulfing

This pattern consists of two candles. The first candle is narrow in range and closes down. This candle shows the sellers of the stock maintain control but they do not have as much conviction or were not pressing the stock very much. The second is a wide range candle that “engulfs” the body of the first candle and closes near the top of the range.  This compelling move, generally accompanied with compelling volume, shows exhaustion on the sellers side and conviction on the buyers.