Bearish engulfing: The bearish engulfing is a

The bearish engulfing is a bearish chart pattern . Learn its meaning, trading strategy, examples, risk management, and related patterns. What is Bearish Engulfing Candlestick Pattern? The Bearish Engulfing candlesticks pattern indicates the potential reversal in an uptrend and signals the change in the market momentum from bullish to bearish, using a two-candlestick formation. 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. Bearish engulfing is a frequently used candlestick pattern that traders refer to as a bearish trend reversal indicator after an extended uptrend . It appears at the end of an uptrend within a chart and is an essential concept of technical analysis.