When encountering a strong engulfing Candlestick, there are mainly three ways to enter the market. The key to choosing lies in whether you value 'earning more' or 'losing less'. Based on my real trading experience, I would like to share some practical views:

• Advance Order Method: Place an order at the midpoint of the engulfing Candlestick body. This tactic is similar to bargaining at a market, low cost but may result in waiting in vain. I tried this while trading rebar last year, and I did catch a few significant rebounds, but there were also three instances where the price gapped directly after placing an order, resulting in no execution at all.
• Closing Confirmation Method: Enter the market after the Candlestick has completed. For example, if the closing price of the engulfing Candlestick is 10, buy directly at 10.5 on the next open. Although it costs an extra 0.5, it is more secure. I used this method when trading Shanghai copper in March this year; although I made less profit at the beginning with 10 points, I avoided two false breakouts, which made me feel more at ease.
• Breakout Follow-up Method: Only take action when the price breaks below the lowest point of the engulfing Candlestick. This method is the most conservative and is suitable for those who are afraid of being trapped. It's like fishing; you wait for the bobber to sink before you lift the rod—tried it with iron ore in May, and indeed wasn't fooled by false moves, but by the time it was confirmed, the market had already moved 3%, which had to be compensated for by position management.
To be frank: if you want to earn a good cost-performance ratio, you have to accept the possibility of missing out; if you want certainty, you have to be willing to give up some profit.
I often use the second option because the safety of the principal is more important than earning a few extra points. However, for particularly promising varieties, such as the recent trend in palm oil, I would use a combination of the first and third options: placing half of the position in advance and waiting for a breakout with the other half, allowing for both offensive and defensive strategies. #K线形态