Candlestick Patterns · Bearish
Bearish Engulfing
A bearish candle whose body covers the prior bullish body.
The second candle opens at or above the prior close and finishes below the prior open. Sellers took back the whole previous body.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- The first candle is bullish.
- The second candle is bearish.
- The second body fully covers the first body.
Market context
The usual setting is a rally.
Entry example
An example entry is below the engulfing candle's low.
Stop-loss example
An example stop is above the engulfing candle's high.
Target example
An example target is the start of the rally.
Common mistakes
- Selling an engulfing candle that is still inside a larger uptrend with no level.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.