Engulfing candles vs Railway Tracks

Hi,

In spot fx are engulfing candles stronger than railway tracks? As they essentially are railway tracks bit and a further range close?

monorails and trams are the most strong in spot. spot goes woof.

depends, like they say

location, location, location!

IMO the shape is not that important. You could argue that engulfing reflects stronger rejection/reversal, but ultimately the cutoff points are arbitrary. For example, H4 candles plotted at GMT+2 offset will produce a different pattern to those plotted at GMT+1, and so forth.

In any case, candles are generally a lagging indicator, in that they depict where price has been. Whereas S/R (as one contrasting example) is a leading indicator - not only are S/R levels consistently visible across all timeframes, but they can tell you where higher volumes of orders are likely stacked, increasing the probability of a future lull/bounce at that level.