How to spot a Bearish Engulfing
- Appears after a rally
- Candle 1 is green
- Candle 2 is red and its body covers the whole body of candle 1
- Stronger at resistance and with high volume
What the Bearish Engulfing tells you
Buyers were in charge on the first candle. On the second, sellers pushed price below the first candle's open. At resistance, that shift often marks the top of a move.
How traders use it
- Enter on the close of the engulfing candle or on a small bounce
- Place the stop above the high of the pattern
- Target the next support zone
- Risk only a small, fixed part of your account on the trade.
Common mistakes
- Shorting it in the middle of a strong uptrend
- Ignoring where it formed
- Not checking volume
See it on a real chart · EP 01Candlestick Patterns for BeginnersWatch the free lesson →
Questions about the Bearish Engulfing
What does a bearish engulfing pattern mean?
It means sellers overpowered buyers in a single candle, covering the whole previous green body. After a rally, it often signals a reversal down.
Where is a bearish engulfing strongest?
At a resistance level, after a clear rally, with above-average volume on the red candle.
For education only, not financial advice. The chart is an illustration of the pattern, not real market data. No pattern works every time; always use a stop-loss.