I just analyzed one of the strongest signals on candles – the engulfing pattern. It’s truly a powerful formation because it shows a complete reversal of control between buyers and sellers.

Starting with the bullish version. It appears when the trend is falling, and then suddenly the candle opens low and closes high. The first candle is a small red one, and the second is a large green one that completely engulfs it. This means buyers have entered with strength and taken control of the game. I often see this at lows, where emotions are at their highest.

At the top, we have the bearish version of engulfing. The trend is moving upward, everything looks good, but suddenly a large red candle appears, engulfing the previous green one. This signals that sellers have regained control. The end of the buyers’ party.

But listen, not every engulfing pattern works. It’s most effective in major support and resistance zones, especially on longer timeframes – H4 or D1. On 15-minute candles, it might just be a market trick.

My advice? Wait until the candle fully closes. Enter after the close, not during its formation. That’s the difference between hitting and missing.

Remember, these are just technical observations, not investment advice. Always do your own analysis before making any decision.