Bearish Engulfing

A Bearish Engulfing is a bearish reversal candlestick pattern that typically appears after an uptrend. It consists of a small bullish (green) candle followed by a larger bearish (red) candle whose real body completely engulfs the previous candle’s body, signaling that sellers have overwhelmed buyers. This pattern indicates weakening bullish momentum and the potential start of a downward trend, especially when it forms near a strong resistance level or after a prolonged rally. Traders often look for confirmation through higher selling volume or a subsequent bearish candle before considering short positions or booking profits.