A two-candle pattern where a large red candle completely engulfs the prior green candle's body — sellers took over decisively.
After an up-move, a small bullish candle is followed by a bearish candle whose body opens at or above the prior close and closes below the prior open, engulfing it.
It signals a shift from buying to selling pressure and a possible top or reversal, strongest at resistance or after an extended rally.
Two candles: first bullish (green), second bearish (red) with a body that fully covers the first. Location at a key level adds weight.
Never trade a single candle in isolation. It only carries weight with context — location at a key level, the prevailing trend, and confirmation from the next candle or from volume. On its own it is a hint, not a signal.
Reading a definition is step one. Chart Bound drills you on spotting Bearish Engulfing and dozens of other setups on live candles, and the Daily gives you one fresh chart to read every day. Free to start.