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Ratio analysis plays a vital role while investing in the stock market.

While investing in the stock market, it is essential for investors to know certain tools that will help them make informed decisions.

The Engulfing pattern is a bullish reversal pattern comprised of two candlesticks of opposite colours. Therefore, this is a bullish reversal pattern that is formed at the bottom of a downtrend. 

Candlesticks are a way of communicating information about how price is moving. As the name suggests, the candlesticks charts resemble a simple candlestick with a body and wick.

A candlestick displays the open, close, high and low price of the underlying asset for a time period. In a typical candlestick chart, each candlestick represents a specific time period, such as a day, a week, or an hour. 

Candlestick charts has been around for hundreds of years. They are often referred to as "Japanese candles" because the Japanese would use them to analyze the price of rice contracts.