Bearish reversal

Bearish Engulfing

A two-candle pattern where a large red candle completely engulfs the prior green candle's body — sellers took over decisively.

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BullishEngulfs itRed body swallows the prior green
How the pattern looks on a chart

What it is

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.

What it signals

It signals a shift from buying to selling pressure and a possible top or reversal, strongest at resistance or after an extended rally.

How to spot it

Two candles: first bullish (green), second bearish (red) with a body that fully covers the first. Location at a key level adds weight.

One caveat

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.

Related terms

Bullish EngulfingShooting StarEvening StarSupport & Resistance

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