A bullish engulfing candle appears. The sensible next step is...

Wait for confirmation and plan an exit

Three candle patterns worth knowing

Some candle shapes show a shift in the tug-of-war between buyers and sellers. Three are worth knowing first.
Doji: open and close are almost the same, so the body is a thin line. Buyers and sellers ended the period in a draw.
Hammer: a small body on top of a long lower wick, after a fall. Sellers pushed price down hard, but buyers pushed it back up by the close.
Engulfing: a big candle whose body completely covers the body before it, in the opposite colour. The other side has taken control, for now.
Location matters. A hammer at a well-tested support level says far more than one floating in the middle of nowhere.
Common mistake
Mistake: treating a pattern as a promise. Patterns fail often. Wait for the next candle to confirm, and always know where you'd get out.
Key takeaway
Patterns are clues about who's winning, not predictions. Context (trend + level) turns a clue into evidence.

A doji shows... Buyers and sellers ended undecidedOpen and close almost equal means neither side won the period.
A hammer has... A small body and a long lower wickThe long lower wick shows sellers pushed down hard and buyers fought back before the close.
Where do patterns carry the most weight? Near support or resistanceAt a level lots of traders watch, a pattern shows how buyers and sellers actually react there.
A bullish engulfing candle appears. The sensible next step is... Wait for confirmation and plan an exitPatterns fail often, so traders confirm first and always know where they'd get out.