What is Bearish Engulfing candlestick pattern – Define and Use

Bearish Engulfing candlestick pattern how define and use
Bearish Engulfing candlestick pattern how define and use

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The Bearish Engulfing candlestick pattern is one of the most common patterns at the end of an uptrend. In other words, this is a bearish reversal or peak pattern with the shape of a bear claw. Suitable for Traders who like to open bearish FTT trades or find a reasonable selling time.

Before to go, I think you should read this short article about the candlestick shapes:

Name of shapes of Japanese candlestick – Define and use

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What is the Bearish Engulfing candlestick pattern?

The Bearish Engulfing candlestick pattern usually appears at the end of an uptrend, it consists of only two opposite candles.

  • Candle 1 is a bullish candle with a short body at the bottom with a long upper tail. That shows the market is having a strong pulling-about to the downside.
  • Candle 2 is a complete bearish candle with a body 2 times longer than the body of candle 1.
  • Remember that the chart should be a steady uptrend.
What is Bearish Engulfing Define and Use
What is Bearish Engulfing Define and Use

Meaning of Bearish Engulfing

Bearish Engulfing is a regular candlestick pattern found at the end of an uptrend. However, you can not define it without their characteristic that a weak bullish candle has a long upper beard, followed by an extremely strong bearish candle which is a sign of an imbalance tension. It is a sign that the market starts to strongly reverse into a complete downtrend.

Remember, this is a pattern that makes sense if and only if the market is on the uptrend. The more steadily the price increases over a long period of time, the more likely the reversal point of this pattern appears. The probability is relatively large.

How to open a Bearish Engulfing trade

The Bearish Engulfing candlestick pattern is easy to enter. If you are on the verge of an uptrend and see a Bearish Engulfing candlestick pattern, now is the time to take profit or open a bearish position.

The best time to focus your attention is when the candle 1 appears. It’s best if try to make a short position.

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What is Bearish Engulfing candlestick pattern – Define and Use
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