Bearish engulfing candlestick
bearish · candle pattern
A bearish engulfing pattern is a two-candle bearish reversal: a small bullish candle followed by a larger bearish candle whose body completely engulfs the prior body. It signals an aggressive shift from buyers to sellers.
Formation rules
- First candle is bullish, second is bearish
- Second candle's real body fully engulfs the first
- Forms after an uptrend
How to trade it
Short on engulfing-candle close. Stop above the engulfing high.
Common pitfalls
- Confirmation by follow-through candle is recommended
- Strong uptrends may absorb the pattern
Statistical context
Symmetric reliability to bullish engulfing.
Related patterns
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