engulfing candles

the pattern consists of two candles, where the body of the second candle completely engulfs the body of the first candle. an engulfing candle pattern could indicate a strong move in a certain direction.

this report identifies engulfing candle patterns and measures their performance. lets look at ES futures new york session on the 15 minute chart as an example:

as you can see above, looking for target zones around the average performance levels of .30% for bullish engulfing candles and .35% for bearish engulfing candles would have worked out pretty well.

why engulfing cnadles matter :

engulfing candles can signal strong moves in a certain direction and are crucial for identifying potential trade opportunities.

bullish engulfing: suggests a potential uptrend, and traders can use this to set bullish targets.

bearish engulfing: suggests a potential downtrend, and traders can use this to set bearish targets.

understanding the performance of these patterns in different timeframes helps traders set realistic targets and manage risk effectively.