– Downward trend. Even if temporary trend.
– White candle completely engulfs the body of black candle.
– Indication of reversal.
– Large body engulfs small body.
– Large volume on the engulfing day further indicates a reversal.
– After a fast moving down turn, this pattern can lead to “shorting” demand and less stock
available, which can drive prices up. Day 3 can be a strong up day.