The engulfing pattern is reliable.



Many people rush to shout "short" as soon as they see a red K wrapping a green K.
However, a truly destructive engulfing pattern must be contained within the lower third of the previous candlestick.

📉 Bearish Engulfing:
The red K went all the way down from high to low, closing near the bottom line.
The bulls are being crushed into the ground, and the probability of further declines is high.

📊 Fake Engulfing:
Although the pattern was swallowed, the closing was in the mid-range,
The bulls and bears are still pulling at each other, and the bears haven't gained any advantage—it's not that fierce, which is not a good signal.

Remember in one sentence:
Don't just look at the engulfing bearish pattern, pay attention to the wrapping too.
The tighter you hold on, the more strength you will have later!
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GateUser-5d1fd346vip
· 08-03 11:57
Bull Run 🐂
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