CANDLESTICK PATTERN
Engulfing candle
A two-bar shift in which the second real body covers the first.
Rules visible before the outcome
- Opposing candle direction
- Second body covers the first body
- Optional whole-range rule is stated explicitly
02 / CONFIRMATION
When the idea becomes eligible
The engulfing close plus independent location or structure criteria.
03 / INVALIDATION
What proves it wrong
Beyond the two-bar extreme or the structural level being defended.
The attractive mistake
Loose definitions and hindsight make ordinary large candles look special.
Make it falsifiable
Compare body-only and full-range definitions using the same exits.
1Freeze the geometry
2Timestamp eligibility
3Count every outcome
4Test unseen data