Sunday 15 June 2014

Bearish Engulfing Pattern

A bearish engulfing pattern is a candle pattern established at the end of an uptrend.
The bearish Engulfing candlestick Pattern may be a bearish reversal pattern, typically occurring at the top of an uptrend.
Identification of Bearish  Engulfing Candlestick Pattern
The pattern consists of two Candlesticks.
The bearish Engulfing pattern is the precise opposite that of the bullish Engulfing pattern
The second candle in the pattern is the reversal signal.
Bearish Engulfing Pattern reject gap up


Bearish Engulfing Pattern


                                                             First day Bullish Candle
Second day Bearish Candle

 The first candle is bullish.
The second candle is bearish and engulfing the body of the preceding bullish candle. Shadows are not important.
Bearish Engulfing Pattern

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