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# Engulfing Pattern: The Reversal Signal You Need to Know



You know that moment when the chart changes behavior abruptly? It could be an engulfing pattern in action.

The mechanics are simple: two consecutive candles, where the second completely "swallows" the first. It sounds like something out of fiction, but on the charts, it is very real.

**How it works:**
- **High Engulfing**: appears after a decline, signaling a possible recovery
- **Low Engulfing**: appears after a high, may indicate a slowdown

The detail: context is everything. The same pattern can mean reversal or simple consolidation, depending on where it appears in the trend. That's why traders often combine it with other indicators before acting.

Experienced traders monitor this pattern in assets like [$BNB](/trade/BNB_USDT?contentId=23347218215994), [$TRUMP](/trade/TRUMP_USDT?contentId=23347218215994), and [$USDC](/trade/USDC_USDT?contentId=23347218215994) to capture movements earlier.
BNB-3.11%
TRUMP-10.21%
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