Engulfing candle

### What it is Bullish engulfing: a green candle whose body fully covers the prior red candle's body. Bearish engulfing: a red body fully covering the prior green one. The read is a handover. One period's work was completely undone, and then some, inside a single candle. ### Location does all the work The pattern is the same shape everywhere on the chart. Its value is not. - **At the end of a pullback inside a trend:** this is where a clean engulf earns respect. There is a real trend to carry the continuation, and in trending conditions the confirmation entries taken off the lower timeframes are the ones that work. The candle is telling you the pullback is finished. - **In the middle of a range:** noise. In directionless conditions, confirmation entries taken after a weak high or low has run fail more often, because there is no trend to carry them and you get in late. Range conditions call for a different entry style entirely, not for chasing the prettiest candle in the middle of the box. ### It is still only a trigger This system does not trade candle patterns for their own sake. Confirmation has to be a rejection off protected structure, formed on an approved rejection timeframe, with either a sweep or divergence present, and the risk-to-reward has to clear 1.7. The candle is a trigger, never a permission slip. It does not override a single gate. One more thing a big engulfing body should make you check rather than excite you: a large candle forming far from the level is often bad price delivery. Wider stop, entry drifting toward target, RR shrinking. Sometimes the very candle that looks most convincing is the one that killed the trade's math. ### The mistake Calling the engulf before the close. It is not an engulf until the body is locked in. Module 9, Lesson 15: Rejection Candle Key Rules.