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This pattern is the opposite of the bearish engulfing pattern, in this case the pattern consists of a small black candle followed by a large white candle; the white candle has opened lower but has closed higher than the previous day thus is engulfing the small black candle.
The significance of this pattern is that it usually comes after a downtrend and therefore indicates a major reversal in the markets.
It signifies a bullish market where bulls have won out and where the selling has stopped therefore this pattern could be used as a signal to trade long.
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Most candlestick patterns should appear close to previous resistance or support levels depending on what type it is. You should only trade a candlestick pattern if it's near these levels.
Don't trade using these patterns if it's not at the top or bottom of a trend. These patterns appear a great deal so you have to make certain you only trade at the right level.
This is very important as you will end up over trading them and you will end up losing more money than you imagined.
