Bearish Engulfing
A red candle whose body completely covers the body of the previous green candle. Control shifts from buyers to sellers.
Where it matters
Strongest after a rise and at a resistance zone.
Faded candles are the trend before it, the band is the pattern, the dashed line is the level it formed at, and ✓ marks the confirming candle.
How to read it
- 01
How it forms
Candle 1 is green. Candle 2 opens at or above the close of candle 1 and closes below its open.
- 02
Where it matters
Strongest after a rise and at a resistance zone.
- 03
What confirms it
The next candle stays below the middle of the engulfing body, or closes below its low.
- 04
Where the idea is wrong
A close above the high of the engulfing candle.
- 05
What volume should do
Volume on the engulfing candle higher than on the candle before it supports the shift in control.
- 06
Common mistake
Ignoring the larger trend. In a strong uptrend, one engulfing candle is often only a pause.
Read it next
From the book
Read the full chapter in the book.
Chapter 10 of Trading Candlestick Patterns explains the Bearish Engulfing with real Indian market charts, volume context and stop-loss placement.
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Educational content only. A pattern describes what buyers and sellers did; it does not predict what price will do next. Not investment advice or a buy, sell or hold recommendation.