A bearish engulfing pattern is a two-candlestick reversal formation that appears after an uptrend and signals a potential shift from buying pressure to selling dominance. The first candle is a small bullish candle, followed by a larger bearish candle whose real body completely engulfs the previous candle’s body, showing that sellers have taken control from buyers. This pattern reflects strong supply entering the market at higher levels and possible exhaustion of the uptrend. Its effectiveness increases when it forms near a resistance zone, after a strong rally, with higher volume on the engulfing candle, and when the next candle closes below the engulfing candle’s low for confirmation.