I've noticed that many beginners in trading don't quite understand how reversal patterns work on charts.

Let's analyze one of the most reliable signals that I often see on daily charts.

Bullish engulfing — that's what I catch when the market is ready for a reversal upward.
See, when a large green candle completely covers the previous red one, it's not just by chance.
It means that the bulls have taken control and pushed out the bears.
After a downtrend, this pattern often signals a change in direction.

The opposite situation is bearish engulfing.
When a powerful red candle engulfs the previous green one, it indicates that the bears have seized the initiative.
If this happens after a rally, it could signal a reversal downward.
Honestly, I don't blindly believe every bullish engulfing or bearish signal pattern.

An important point — never enter immediately on the pattern itself.
I wait for confirmation.
I watch how the price moves after the engulfing candle.
If the movement goes in the direction of the pattern, then it's more serious.
Plus, I always check the volume — if the volume is low, the pattern might be false.

Trend and its strength are also critical.
A strong trend can ignore these patterns, so I always look at the overall picture.
Not just one candle, but the context as well.
This approach helps me filter out false signals and catch truly interesting reversals on BTC, ETH, and SOL.