Yesterday's severe gravestone doji formation should have lead to...

Yesterday's severe gravestone doji formation should have lead to a sell-down today...

Indeed a few suspected this on the close last night, bailing at any cost.

In fact they tried hard to kick off the "down day" from the open...but it failed.

Instead, we ended the day with a significant version of the engulfing pattern...in my view stronger than the usual pattern due to the significant length of the tail in yesterday's gravestone signal.

The upper tail gives us an immediate expected trading range, whilst the high is the obvious breakout level.

Cheers!