⁣The Engulfing Pattern is a two-candle reversal pattern that occurs when a small candle is followed by a larger one that completely engulfs the first candle. There are two types: 🔹Bullish Engulfing: A small red candle is followed by a larger green candle, completely engulfing the red one. This suggests a shift from bearish to bullish control. 🔹Bearish Engulfing: A small green candle is followed by a larger red candle, completely engulfing the green one. This indicates a shift from bullish to bearish control. Key Point: The strength of the engulfing candle is crucial. A larger engulfing candle typically means a stronger reversal. The Engulfing pattern signals that the market has changed direction. Example: After a downtrend, a Bullish Engulfing pattern suggests that buying momentum is increasing and a bullish reversal may follow. After an uptrend, a Bearish Engulfing pattern signals that selling pressure is rising and a bearish reversal is likely.