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
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