What is Engulfing Candle?

A reversal pattern consisting of two candlesticks where the second candle completely "engulfs" the body of the first.

In-Depth Explanation

A Bullish Engulfing candle at the bottom of a trend is a strong buy signal, while a Bearish Engulfing candle at the top is a strong sell signal.

"A massive bearish engulfing candle on the daily chart ended the three-week rally."

Knowing the terms is just the start. Learning how to apply them is where the edge is found.