Engulfing — one side swallows the other
The most reliable two-candle reversal story.
The bullish story
A small red candle, then a green candle whose body swallows it whole. Sellers pressed, buyers answered with everything. That is a momentum flip in one bar.
The bearish mirror
Same script inverted after a rally: a big red body swallows the small green one. Late buyers are suddenly underwater.
Quality control
The engulfing body must clearly dwarf the swallowed one, and the pattern needs a real trend behind it. A "kind of big" candle in sideways chop is not an engulfing — it is a coin flip.
Quick check
A bullish engulfing works best when it appears…
- After a clear decline, ideally at support
- In the middle of a tight range
- Only on 1-minute charts
- After three green candles
Trend + location: the story is "sellers had control, buyers took it back." No prior decline means no story.
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Educational content only — not financial advice.