#TradingBasics | Engulfing Candle Engulfing candle is a classic
reversal candlestick formation. The body of the engulfing candle is strictly
bigger or
equals the body of the preceding candle and «engulfs» it.
Bearish engulfing candle - bearish candle that engulfs preceding bullish candle.
Bullish engulfing candle - bullish candle that engulfs preceding bearish candle.
Being formed on a key level, it confirms a significance of the identified level for the market participants and their willingness to sell/buy from it.
For Top-Down trading Engulfing candle:
must be formed on a
key level/zone
must be strictly formed only after a
strong bullish/bearish candle
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