Dislikedwelp, that's a bearish engulfing pattern. It signals that the trend is weakening & is about to shift. Your understanding is perfectly fine, it's just that the reason you aren't seeing any effect right away from the chart I posted is because it's the W1/weekly. We still have 2 days left for the current candle to close. So it might take a while to develop. So if you plan to trade the htf, you have to be really patient in the buildup. If you scalp, then the formation on the htf is of no concern really.
Anyway I've read people saying the trend is up...Ignored
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