Volume + Engulfing Candle β Power Shift Confirmation πͺπ
π An Engulfing Candle with rising volume is one of the most reliable signs of trend reversal or continuation, depending on its position in the trend.
β
Formation:
Big bullish or bearish candle fully engulfs the previous one.
Volume 1.5β3Γ higher than average.
Appears after a trend phase or consolidation.
β
Meaning: Indicates a power shift between buyers and sellers; volume validates strength.
π Example: Stock falls βΉ920 β βΉ870, forms bullish engulfing on 2.2Γ volume β reversal signal β short-covering and fresh buying confirmed.
π§ Tip: Use engulfing patterns only when volume confirms; low-volume engulfing = weak signal.
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