When the market surges high, it doesn't suddenly reverse. Usually, it first leaves a long upper shadow candle (the final sprint of the bulls). The longer the shadow, the heavier the selling pressure, indicating that the main force begins to unload at that level.

Next, an engulfing candle completely engulfs the previous bullish candle, turning market sentiment directly from "hitting the top" to "counterattack."

These two candles together form a typical "top testing + reversal confirmation" structure.

There are three entry strategies:

Entry 1: Trade small on big. Enter when the price structure breaks in the minute chart window, offering a high cost-performance ratio.

Entry 2: Wait for the next candle to approach the opening price of the engulfing candle. Confirm the signal is recognized by the market before entering, making it less likely to be fooled by false signals.

Entry 3: Break below the low of the engulfing candle before entering. This is the safest method, but it yields slightly less profit.

These three methods have no superiority or inferiority; they just reflect different risk preferences. Regardless of the method chosen, stop-loss should be placed at the highest point of the engulfing candle. $BTC/USDT, bkexchange$