Bearish Engulfing Pattern

Bearish Engulfing Pattern is a technical analysis candlestick charting pattern. This pattern occurs in the market which is in a clearly defined uptrend and signals lower prices to come. The pattern consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that engulfs the previous up candle’s body. It is a bearish reversal pattern and sends an even stronger signal when the down candle engulfs the bodies of two or three previous candles. It shows sellers have overtaken the buyers and pushed the price down more aggressively than the buyers were able to push it up.