In technical analysis, the bearish engulfing pattern is a chart pattern that can signal a reversal in an upward price trend . Comprising two consecutive candles, the pattern features a smaller... One of the most widely recognised formations is the bearish engulfing pattern. This pattern often signals the shift from an uptrend to a downtrend and can be an early warning for traders. The candlestick pattern bearish engulfing has shown up during many key market moments. The Bearish Engulfing Candlestick Pattern is considered to be a bearish reversal pattern, usually occurring at the top of an uptrend. The pattern consists of two Candlesticks: Generally, the bullish candle real body of Day 1 is contained within the real body of the bearish candle of Day 2. A bearish engulfing pattern, which is a technical chart pattern that indicates that lower prices are on the way . The pattern consists of an up candlestick (white or green) followed by a big down candlestick (black or red) that eclipses or "engulfs" the smaller up candle.
