Bearish and bullish engulfing.

Absorption combinations can be considered one of the most powerful variants of reversal candles; this is due to the very process of forming such candle combinations.
Bearish and bullish engulfing are mirror combinations and appear depending on the direction of the trend; when they are formed, the first one is a trend candle with a small body and short shadows; as a rule, it indicates a decrease in volatility on the selected time frame.

Next, a large candle appears directed against the trend; its appearance indicates a change in the direction of the trend or an attempt by traders to change the existing trend.  

Bearish engulfing.

Appears during a pronounced upward trend, the price begins to slow down its growth and a small candle is formed, sometimes such candles are called doji , after which a sharp decrease in price occurs which forms a long candle, sometimes several times longer than the doji.

That is why these figures are called “Absorption”.

The signal is strengthened if the appearance of bearish engulfing was preceded by a prolonged upward trend and the third candle is also bearish.

Bullish engulfing.

It is a signal indicating a high probability of an uptrend; it appears on charts with a downtrend.

The first is a small bearish candle, the second is a long bullish one that completely covers the body and shadows of the previous one.

The shorter the body of the first candle and the longer the body of the second, the stronger the signal given; this statement also applies to bearish engulfing.

It should be noted that you can use the “Engulfing” candlestick pattern on a time frame lasting more than one hour, but not longer than one week.