Since you talk about probabilities and textbooks - what are the probabilities then? Have you calculated them? Just a quick visual on your chart revealed a similar pattern which in fact preceded more downside:
then why are you posting this point here? you have two reversal bars in 10 bars.....a bullish engulfing and a pin reversal bar..... and many reversals are indicative of trading ranges so expect a bull channel which is a bear flag......
Here is what you know with real probability: next week's high is "probably" going to be higher than this week's close. The rest, you don't.
If anyone here made money during the formation of the bar then you can flex. Interpreting meaning from one single bar is...
What do I mean by probabilities? I mean my probabilities. I know what my probabilities are through my own trading history. Of course, if you don't trade, but just pretend to be a trader on the internet, then you have no idea what I am talking about. Pin bar trade win rate taken during the period of my journal was 90%, with a 47 profit factor. Obviously WR and PF are not that high over the long run(hundreds of trades taken over the years), but i've been doing this long enough to know roughly what my odds are. https://www.elitetrader.com/et/threads/trading-with-krugman.328592/page-20#post-4835240