Most traders don’t miss the signal.
They misread the context.
A bullish engulfing candle isn’t a green light.
It’s a shift in control — and control only matters if someone was losing it first.
Here’s what actually separates amateurs from precision traders:
1️⃣ Location decides everything 📍
A bullish engulfing candle in the middle of a range is noise.
At a clear support level after exhaustion? That’s intent.
If it doesn’t reject something meaningful, it’s just color.
2️⃣ The prior candle tells the story 🧠
Was the previous move impulsive or weak?
A strong engulf after panic selling suggests absorption.
A small engulf after drifting price action suggests nothing.
3️⃣ Volume confirms commitment 📊
If buyers truly stepped in, volume expands.
No volume expansion? Then it’s likely a liquidity sweep, not accumulation.
4️⃣ Structure must break 🔓
A bullish engulfing candle that doesn’t reclaim structure is incomplete.
Watch for a higher high on lower timeframes.
That’s when probability shifts.
5️⃣ Risk placement is obvious — if the setup is real ⚖️
A valid engulfing candle gives you a clean invalidation point.
If stop placement feels “unclear,” the setup probably is too.
The candle itself isn’t powerful.
The context around it is.
Read the environment, not just the shape.🔥
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