Candlesticks

Engulfing Candle

A candle whose body fully covers the previous candle's body — strong shift in control.

See it in use
green body fully covers prior red
Engulfing Candle

How it's used correctly

Bullish engulfing at HTF support after a clean sell-off is a textbook reversal signal. Bearish engulfing at HTF resistance, same logic.

Common mistake

Counting wick-engulfing as full engulfing. Only the body covering matters.

Lessons that demonstrate this term

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