Report Guides
Engulfing pattern frequency, reliability, and R-multiple outcomes
An engulfing candle completely covers the prior candle's range. Bullish engulfing at support and bearish engulfing at resistance are classic reversal signals. This report quantifies their actual effectiveness.
| Pattern | Win Rate | Avg R-Multiple | Best Context |
|---|---|---|---|
| Bullish Engulfing at Support | 60-68% | 1.3-1.8R | At PDL, VA Low, or HVN |
| Bearish Engulfing at Resistance | 58-65% | 1.2-1.6R | At PDH, VA High, or HVN |
| Engulfing in Trend | 50-55% | 0.8-1.2R | Counter-trend, less reliable |
Only trade engulfing patterns at key support/resistance levels. The pattern alone has marginal edge; it's the context that makes it work. Enter at the close of the engulfing candle with stop beyond its extreme. Target the next major S/R level.