Candlestick Patterns→ Pattern Detail
Bearish Engulfing
A large bearish candle that engulfs the previous bullish candle
A bearish engulfing pattern occurs when a bearish candle's body completely engulfs the previous bullish candle's body. It shows sellers overwhelming buyers - a strong reversal signal at resistance.
✓How to Recognize
- •Red candle body engulfs prior green candle body
- •Appears at resistance after advance
- •Larger candle shows strong selling
- •Volume higher on engulfing candle
⚡How to Avoid
- →Must appear at meaningful resistance
- →Don't trade in mid-range
- →Higher volume = stronger signal
- →Wait for next candle if uncertain