A two-candle pattern after an advance: an up candle followed by a down candle whose body completely covers the prior body.
How traders use it: Most relevant at resistance or after a buy-side sweep. Confirmation: continuation below the engulfing candle's low.
Common mistake: Shorting it into higher-timeframe support directly beneath.
Related: Bullish engulfing · Outside bar · Three outside up / three outside down
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.