Bearish Engulfing candlestick pattern

2-candle patternPossible bearish signal

Bearish Engulfing candlestick pattern

A large red body completely covers the previous green body. Sellers overpowered buyers.

After a price advanceClose above openClose below open

Illustrative candles, not a live chart. Each candle covers one chart interval.

Spot it in 3 steps

What to check next

A next close lower, or a break of nearby support, confirms the pattern.

Common mistake

Only the bodies must engulf — wicks don’t count. In choppy markets it appears often and fails often.

Definition reference: Investopedia

Educational example, not a trade recommendation. Patterns can fail. Check the wider trend, support and resistance; practise on demo rather than assuming the next trade will win.

Bearish Engulfing candlestick pattern