Hi everyone, I have a question about engulfing pattern. For example when in an uptrend, the upper wick of the 1st candle is higher then the upper wick of the 2nd candle. But the 2nd candle's body still engulfs the 1st candle's body. Is it still be considered engulfing pattern? Or the 2nd candle also need to engulfs the wick too?
The engulfing pattern is when the new candle engulfs only the body of the previous one, not needed to engulf the wicks. If you have other questions on the japanese candlestick paterns ask here.