๐Ÿ“ˆ"The trend is your friend until the end when it bends."โ€” Ed Seykota
๐Ÿ“Š"In investing, what is comfortable is rarely profitable."โ€” Robert Arnott
๐ŸŽฏ"The stock market is a device for transferring money from the impatient to the patient."โ€” Warren Buffett
๐Ÿ”"Charts don't lie โ€” they simply reflect the market's truth."โ€” ChartStudio
๐Ÿ’ก"The market is never wrong; opinions often are."โ€” Jesse Livermore
โšก"Price is what you pay, value is what you get."โ€” Warren Buffett
๐Ÿ“ˆ"The trend is your friend until the end when it bends."โ€” Ed Seykota
๐Ÿ“Š"In investing, what is comfortable is rarely profitable."โ€” Robert Arnott
๐ŸŽฏ"The stock market is a device for transferring money from the impatient to the patient."โ€” Warren Buffett
๐Ÿ”"Charts don't lie โ€” they simply reflect the market's truth."โ€” ChartStudio
๐Ÿ’ก"The market is never wrong; opinions often are."โ€” Jesse Livermore
โšก"Price is what you pay, value is what you get."โ€” Warren Buffett
Press ESC to close ยท Type to search all Pulse editions
โ† Back to Learn
Patterns

Engulfing Candle

One candle completely swallows the previous

SmallEngulfs!Bullish Engulfing = Trend Reversal

A bullish engulfing candle completely covers the prior red candle's body โ€” buyers overwhelmed sellers. A bearish engulfing is the opposite. These are strongest at key support/resistance levels. The bigger the engulfing candle relative to the prior one, the stronger the signal.

๐Ÿ”‘ Key Takeaway
Big candle swallows the small one. At key levels, engulfing signals strong reversals.
Disclaimer: The content on ChartStudio is for educational and informational purposes only. It is not investment advice. Please consult a qualified financial advisor before making any investment decisions.