Yeah, a really nice example. When I've written in the past that TA really is quite simple, it's using simple techniques like S/R and S/D, but these sorts of little nuances are what make them effective. As in your example, it's all about where you're looking.
I've seen a lot of people even failing to go back months or weeks in time and are only looking at recent PA for what's going to happen.
RE: Engulfs - how to pick support and resistance