How is engulfing pattern different from outside day pattern?

hElLO tRaDeR,

Candlestick pattern definitions are unregulated and many fight for the same candle with different schools of thought:

For Outside bar and Engulfing bar

  1. Some believe‚Äč that the high, low, open and close of the previous bar must all be within the high and low range of the new candle to form both the patterns. ( which would mean they technically are the same )

  2. Some believe‚Äč that when the previous open and close is within the open and close range of the new candle, it is sufficient to form a engulfing pattern. The High and Low range is ignored in this case.

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portfolioplus911 - So as your point 1 is - engulfing pattern

your point 2 . - is this Outside bar/outside day pattern?



Point 1 = both outside candle and engulfing candle.
Point 2 = engulfing candle only .