Bearish Engulfing Pattern
a.k.a. Bearish engulfing
A two-candle top pattern where a big down candle completely swallows the body of the previous up candle.
In plain English
A two-candle top pattern where a big down candle completely swallows the body of the previous up candle.
A bearish engulfing pattern shows up after a rise. First a small up candle. Then a larger down candle whose body opens above the first one's close and closes below its open, swallowing it whole.
The story: buyers were in control, then sellers crushed them in a single session. It is a warning of a possible reversal, stronger at a known resistance level. See the general engulfing pattern and its twin, the bullish engulfing.
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