I want to share about one pattern that frequently appears on charts and is quite reliable to watch out for, called the engulfing pattern. So, a bearish engulfing is a phenomenon where the previous candlestick, which is relatively small, is suddenly completely covered by the next candlestick that is much larger, and this has a bearish meaning.

Before discussing in more detail, there's one important thing to remember: this pattern is only valid if there is already a clear trend beforehand, whether it's a bullish or bearish trend. Don't try to apply this pattern in a flat or sideways market; the results will be misleading.

If we look at the bearish engulfing, it occurs within a bullish trend. Imagine this: the price is rising continuously, with all green candlesticks and solid bodies. But suddenly, a red candlestick appears with a body much longer than the previous green candlestick. This indicates a change in momentum, sellers are starting to take control.

For bullish engulfing, it's the opposite: a small red candlestick within a bearish trend is suddenly fully covered by a larger green candlestick. This signals that buyers are starting to enter and could be a reversal point.

Now, the technical details. For bullish engulfing, there are three things to check: first, the length of the green candlestick's body must be larger than the previous red body's. Second, the high price of the green candlestick must be higher than the high price of the red candlestick. Third, the close price of the green candlestick should be higher than the high price of the previous red candlestick, but this is not mandatory.

For bearish engulfing, it's the opposite: the red candlestick's body must be longer than the previous green body's, the low price of the red must be lower than the low of the green, and the close price of the red should be lower than the low of the green (but again, not mandatory).

The important thing to remember is that the shadow or wick of the candlestick is not counted in this pattern; focus only on the body. So, if there's a candlestick with a long wick but a small body, it still counts as a small body for pattern analysis purposes.

I often see this pattern on 4H or daily timeframes, and the results are quite consistent if all conditions are met. But it still needs to be combined with other indicators and strict money management; don't rely on just one pattern for entry.