I’ve been reading up on candlestick patterns and one that seems popular is the bullish engulfing. But I’m still unsure why exactly it works — what’s the reasoning behind this formation being bullish? Would love if someone could break it down in simple terms.

If you’re wondering what is bullish engulfing pattern, it’s basically a sign that buyers have taken control after a period of selling. The first candle shows weakness (sellers in control), and the second bullish candle completely overpowers it by closing much higher. This usually signals a shift in sentiment — especially if the pattern appears at a support level or after a dip. The logic is that demand stepped in strongly enough to erase the prior loss and push the price higher. It’s not magic, just price telling a story. I treat it as a potential reversal clue, especially when supported by volume or higher timeframe structure.

That explanation actually clicked with me — “price telling a story” is a great way to look at it. Definitely going to watch for that confirmation now. Thanks a lot!