I've noticed that many beginners in trading get confused with basic candlestick patterns. Let's understand two key signals that often precede a trend reversal.

Let's start with bullish engulfing. This occurs when a strong upward candle completely covers the previous downward candle. It looks like a sharp rebound after a decline. This pattern often hints that the bulls are starting to take control and the trend may reverse upward. I've seen this many times on BTC and ETH charts — sometimes it really works as a signal.

There is also the opposite — bearish engulfing. Here, a large red candle completely engulfs the previous green one. This can indicate that the bears have taken the initiative and the upward trend may turn downward. I saw a few such moments on SOL before corrections.

But here's what’s important: bullish engulfing is not a guarantee. I always wait for confirmation. I watch how the price moves after the pattern, check the volumes, and assess the overall strength of the trend. Sometimes the pattern works perfectly, sometimes the price just jumps in the other direction.

My advice: don’t rush to enter immediately after the pattern appears. Wait for confirmation with the next candle, pay attention to the volumes, and look at higher timeframes. And remember, bullish engulfing works better when the trend is already starting to change direction. Use it as one of the tools, not as the only signal.