One thing I've been observing lately is how market makers (MM) often mislead retail traders by using bullish and bearish engulfing candles. Retail traders tend to take long positions as soon as they notice a bullish engulfing candle - but more often, MM drives the price down right from the opening of the next candle and catches those long positions.

Similarly, when they notice a bearish engulfing candle, they rush to short positions, but MM accumulates the price with the opening of the next candle and catches those short positions.

Now look at this bearish engulfing candle on ETH - personally, I don't fall into this trap. Unless we see a clear break below the yellow line, there is no valid trigger for a short position. As long as we stay above the yellow line, this candle shouldn't worry you.

So the next time you see a bullish or bearish engulfing candle, don't trust it blindly. Either wait for the next candle to close, or even consider taking the other side of the trap.