VideoWhat the RSI indicator actually tells you (and what it doesn't)
RSI measures how stretched a recent move is on a 0 to 100 scale. It is useful for timing, useless for prediction, and misread by most beginners.
Technical analysis
A two-candle pattern where the second candle's body completely covers the first's in the opposite colour, hinting at a shift in control.
An engulfing pattern is made of two candlesticks. In a bullish engulfing, a small red candle is followed by a larger green candle whose body completely covers the previous body, showing that buyers overwhelmed the sellers of the prior period. A bearish engulfing is the reverse: a small green candle followed by a large red one. The pattern matters most after a clear move and at a meaningful level. If SBI has fallen for five days to a support near ₹760 and then prints a bullish engulfing candle on high volume, buyers may be stepping in. The same candle in the middle of a choppy range means little. Traders usually wait for the next candle to confirm direction and place a stop loss beyond the engulfing candle's low or high. Like all candle patterns, it describes probability, not certainty.
VideoRSI measures how stretched a recent move is on a 0 to 100 scale. It is useful for timing, useless for prediction, and misread by most beginners.
A candle is four prices drawn as one shape. Learn to read the shape first, then five patterns that only mean something at the right place on the chart.
Support and resistance are the prices where the market has changed its mind before. Here is how to find the ones worth marking and how to use them with a stop.