outside day study

i guess they call it engulfing. but from what i have seen so far, the signal these kind of volatile days provides are far more complicated. anyone has any setup or experiences with them? thanks

I usually prefer to use such patterns to exit an open trade rather than entering a trade. I also sometimes use them as a hint to whether I'm making the right decision or not. The engulfing pattern or it's western equivalent outside day are usually good signs of ending an existing trend and even a reversal but be careful that the trend should really exist. In a ranging market they could mean nothing.