Engulfing pattern
A two-interval candle formation in which the body of the second candle completely covers the body of the first.
How to read the number
The formation describes a change of closes: the interval finished on the other side of the previous one and with a larger body.
When the metric lies
Its meaning is set by the chosen interval: the engulfing exists on the daily chart and is absent from the hourly one over the same stretch. Neither picture is the more correct.
Also known as: bullish engulfing