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Nikita (SEBI RA)

4th Sep · SEBI-Registered Analyst

Bearish Engulfing – Strong Downside Signal

📊 The Bearish Engulfing is opposite of bullish engulfing. ✅ Formation: 1️⃣ First candle – Small green (weak buying). 2️⃣ Second candle – Big red that completely engulfs the body of green candle. ✅ Meaning: Sellers overpower buyers, trend may reverse bearish. 📌 Example: Stock rises to ₹580, small green candle forms. Next day, big red opens at ₹585 but closes at ₹560 engulfing green body → signals downside. 🧠 Rule: Stronger when it appears at resistance after uptrend.

MARUTI

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