It’s a similar situation with demand levels. If a demand level is engulfed then the sellers caused this and it’s likely that price will continue to fall now the demand level has been broken. Finding a supply level to short from would be the best way to get in on the action here provided that there is enough profit potential on for the trade.
You’ll notice that every single trade I post features at least one engulf but usually more. This is because it’s such a great tool for understanding where price is likely to go and when combined with supply and demand it can be very powerful. The demand level engulfed does not have to be a tradable one. Once again the engulf is the main thing to consider. Please see the example below: