Engulfing Candle

Candle whose body fully covers the previous candle's body - reversal signal.

Bullish engulfing: a red candle is followed by a green whose body fully covers the previous red. Shows buyers took control. Bearish engulfing - opposite. Stronger with high volume and deeper coverage.

In plain words

After a down candle, a much bigger up candle appears that eats the first one - buyers suddenly stepped in hard.

Example

ETH Oct 4, 2024: D1 bullish engulfing from 2.3k -> 2.9k in 2 weeks.

Also known as: bullish engulfing, bearish engulfing

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