engulfingcandlestick

Engulfing candlestick patterns 🔥💹 occur when a larger candle fully “engulfs” the body of the previous one. They signal strong shifts in momentum and often appear at market turning points. On Binance, traders consider them reliable reversal indicators.

1. 📊🕯️ Bullish Engulfing 🟢
A bullish engulfing occurs when a large green candle completely covers the previous red one. It shows bears were defeated, and buyers regained dominance. This is often seen after a downtrend, signaling bullish reversal.

2. 📉🔴 Bearish Engulfing ⚠️
A bearish engulfing forms when a large red candle fully covers the previous green one. It suggests sellers are overpowering buyers and signals bearish reversal at the end of an uptrend.

3. 🔎📊 Importance of Volume 💡
Engulfing patterns carry more weight when supported by high trading volume. It confirms that the shift in control is backed by strong market participation rather than weak fluctuations.

4. 📈📉 Market Psychology 🧠
Engulfing candles reveal sudden shifts in sentiment. Bulls or bears step in with overwhelming strength, wiping out the previous candle. This psychological dominance signals confidence in the new direction.

5. 🪙📊 Trading Strategies With Engulfing Patterns 🛠️
Traders enter trades after confirmation:
Buy after bullish engulfing near support.
Sell after bearish engulfing near resistance.
Stop-loss is set just beyond the engulfing wick for protection.

✅ Conclusion:
Engulfing candlesticks 🔥💹 are decisive signals of market reversals. They represent clear victories of one side over the other. On Binance, recognizing them helps traders capture turning points with strong probability setups.

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