bearish engulfing pattern
Bearish Engulfing is one of the important bearish reversal patterns. It appears after an uptrend.
It's a two candlestick pattern.
It is characterized by a red candle being engulfed by a larger green candle.
- A bearish engulfing pattern is a bearish reversal pattern.
- Sellers are momentarily in control.
- The larger it is, the more significant the pattern is.
- Don't treat this pattern in isolation. Just because you see a bearish engulfing pattern doesn't mean you go short.
- The real body- the difference between the open and close price of the candlesticks is what matters. The real body of the down candle must engulf the up candle.
- The pattern has far less significance in choppy markets.