Wick

Bullish engulfing

Candle Combos

One candle eats another

A green body fully swallows the prior red body after a decline. Yesterday's sellers are all underwater in one bar. It's the loudest one-bar reversal there is.

Check yourself

What makes an engulfing signal strong?

  1. Any two opposite candles
  2. Clear prior trend + large swallowed body correct
  3. It appears at lunch

It's a reversal pattern: it needs a trend to reverse, and size = volume of the statement.

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