Bearish Engulfing pattern

A bearish engulfing pattern is a two-candle reversal formation that usually appears at the top of an uptrend, signaling potential downside momentum. It occurs when a small bullish candle is followed by a larger bearish candle whose real body completely engulfs the previous candle’s body, showing that sellers have overpowered buyers. This shift in control reflects strong selling pressure and is considered more reliable when it forms near a resistance zone, after an extended rally, or with high trading volume, often indicating the start of a possible downtrend.