This is a candlestick pattern called the Engulfing pattern.
It bares its name from the fact that the second candle “Engulfs” the first.
It is bigger
This occurs when price, already in exhaustion, taps into an opposing liquidity zone.
Think a trampoline
You jump down into it
It goes down from that energy
And springs you back up with more energy than before
My teacher, along with other confirmations, doesn’t get into a trade until he sees this. It gives you certainty
It bares its name from the fact that the second candle “Engulfs” the first.
It is bigger
This occurs when price, already in exhaustion, taps into an opposing liquidity zone.
Think a trampoline
You jump down into it
It goes down from that energy
And springs you back up with more energy than before
My teacher, along with other confirmations, doesn’t get into a trade until he sees this. It gives you certainty