I just came across a discussion about engulfing and wanted to share what I observe in the market.

It's really a strong signal of control change. I see it regularly on H4 and daily charts, and honestly, when it appears in key zones, it's worth paying attention.

Let's start with the bullish variant. It appears when a downtrend loses strength. You see a small red candle, followed by a large green one that completely engulfs it. This indicates that buyers have taken control and strongly pushed the price up. To me, this is a signal that something has changed.

On the other hand, we have bearish engulfing. It appears at the top of an uptrend. A large red candle completely engulfs the previous green one. Sellers have regained control, end of the upward movement. This is the moment when caution begins.

But here’s the catch – not every engulfing is equally reliable. I mainly look at the main support and resistance zones on higher timeframes. H4 and daily are my preferred arena. That’s where this pattern has much more strength.

And one more thing – I always wait for the candle to close completely. Lack of confirmation is a risk not worth taking. Only then do I enter a trade with more confidence.

Remember, this is just information I share based on experience. Before any move, analyze your situation carefully. Every trader is responsible for their own decisions.