engulfing pattern

Two candles where the second candle's body is so big it swallows the whole body of the first.

The fuller meaning

A two-candle pattern in which the second body completely covers the first body in the opposite colour: bullish after a decline, bearish after a rise. Bodies, not wicks, must be engulfed. It matters most at key levels; in a choppy sideways market it appears all the time and means little.

engulfing pattern, also called engulfing.

engulfing pattern

The fuller meaning

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