One candle that flips the move

One candle can tell you the sellers just gave up.

It's called an engulfing candle. Here's how to use it.

Look at this real silver chart. On September 16, price kept stalling near 64.90.

Then it broke above that level and rallied to 67.32.

On September 22, three red candles dropped it straight back to that old level.

Then this green candle showed up.

Its body covers the whole body of the red candle before it. That's engulfing.

It closed above where the red candle opened. Buyers took back everything.

Rule one: the body must swallow the whole previous body. Wicks don't count.

Rule two: location. It's strongest after a clear move into a key level, like this old ceiling.

In the middle of a choppy range, the same candle means much less.

Rule three: enter only after it closes. Stop below its wick.

Here, that's an entry near 65.57, and a stop under 64.55.

The next day, silver traded above 67.50.

Save this. Body swallows the last body. After a clear move into a level. Enter on the close, stop beyond the wick.

Your turn. Is this green candle on the euro chart a real engulfing candle? Yes, no, or unsure? Comment below.

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