Bearish engulfing

Body against body, wicks ignored. The first candle opens at 100 and closes at 101. The second has to open at or above 101 and close at or below 100. A close at 100.20 fails the test, however heavy the candle looks.

Context does the rest of the work. Price has to be rising into the first candle for the reversal reading to mean anything. The same two candles inside a downtrend are continuation. How much of an advance counts is a judgment call. Write down what you mean by it, then apply it the same way tomorrow. The level is the highest high of the two candles, wicks included.

The line does two jobs. Below 101.60 it is a level to sell into. Once a candle closes above it and holds, it becomes a level to buy. Entry distance decides the rest. Short at 101.40 with a stop at 101.75 risks 35 cents. Short at 100.80 risks 95 cents for a smaller target.