Bearish Engulfing

Bearish Engulfing

This pattern is the converse of a bullish engulfing pattern, wherein the body of a bullish candle is encompassed by the body of a consequent bullish candle. This indicates an increase in activity from both bears and bulls, and a shift of market sentiment towards bearishness. As we have observed with other patterns, the context of the trend is critical; a bearish engulfing pattern is most indicative of the onset of a bearish price move when it appears in the midst of an uptrend.