Bearish
Engulfing Pattern: Bearish engulfing is an important candlestick pattern
seen in technical analysis, especially in trading. This usually signals a
possible reversal from the bullish trend in the market. The pattern consists of
two candlesticks: Bearish Engulfing Candle
Bearish
Engulfing Candlestick Pattern
1. The first
candlestick is bullish (green or white) and reflects upward movement in the
market.
2. The second
candlestick is bearish (red or black) and has a larger body than the first
candlestick. The important thing is that the body of the second candle
completely surrounds or "embraces" the body of the first candle,
including its shadow or wick. ‘Bearish Engulfing Candlestick’
The presence of
a bearish dominance pattern suggests that sellers have overwhelmed buyers,
leading to a sharp shift in sentiment from bullish to bearish. Traders often
interpret this pattern as a signal to enter a short position or add to an
existing short position. “Bearish engulfing”
Like any trading
signal, it is necessary to consider other factors such as volume, trend
direction, and support/resistance levels to confirm the validity of bearish
patterns and make informed trading decisions. “Bearish engulfing”
