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intermediatePremiumTechnical Analysis

Engulfing

An engulfing pattern is a two-candle pattern in which the second candle's body completely engulfs the first's, marking a decisive one-period shift of control. This article explains the bullish engulfing (after a decline) and bearish engulfing (after a rally), the takeover story each tells, why an engulfing carries more weight than a single candle, the role of context and volume, and why — like every candlestick pattern — it describes a shift rather than predicting one.

11 min readPublished 19 June 2026

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Reversals

A reversal is a genuine change in a market's prevailing direction — an uptrend becoming a downtrend, or vice versa. This article defines a trend structurally (higher highs and higher lows, or lower highs and lower lows), shows how a reversal is the breaking of that sequence, and tackles the hardest problem in all of price action: telling a real reversal from an ordinary pullback. It closes on why reversals are only ever confirmed in hindsight, and why 'catching' them is where so many go wrong.

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