Engulfing candles are one of the most powerful reversal signals when used correctly. A bullish engulfing forms when a strong green candle completely covers the previous red candle, signaling a shift in control from sellers to buyers. The opposite applies for bearish engulfing.

However, context is everything. These patterns work best at key support or resistance zones, not in random areas. Combine them with volume confirmation and trend direction for higher accuracy.

A strong engulfing candle at a major level often marks the beginning of momentum.

Wait for location. Confirm with structure. Execute with discipline.


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