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Bearish Engulfing

A bearish engulfing pattern uses two candles. The second red body takes back the prior green body and shows sellers overpowering the previous candle.

Small green candle followed by a larger red candle whose body covers the first body.

At A Glance

Name: Bearish Engulfing
Category: Bearish Candle Patterns
Type: Bearish Reversal
Number of candles: 2 candles
Typical context: After a run-up, failed breakout, or test near resistance.

How To Identify It

Body: First candle has a green body. Second candle has a larger red body.
Wicks: Wicks can vary, but the body relationship is the main visual clue.
Relationship: The red candle opens at or above the previous green close and closes below the previous green open. Its body covers the previous green body; it does not need to cover both wicks.

Focus on the body relationship. The second candle should be a larger red body that covers the prior green body. The wicks can vary, but the body takeover is the main clue.

Context

This pattern is most useful to study after buyers have been in control and sellers suddenly take back the prior candle.

Bearish engulfing pattern forming after an upward move near an upper resistance area.

This pattern is most useful after buyers have been in control, especially near resistance, an extended move, or a failed breakout area. In chop, it is easier to overread.

What It Shows

The first candle shows buyers in control. The second candle changes the tone by closing weak enough to take back that green body, which tells you sellers did more than pause the move.

What To Watch Next

Watch whether price stays below the red body and continues under the engulfing candle low. Stronger reactions usually do not reclaim the whole body right away.

The read weakens if price reclaims the engulfing body. That means the seller takeover did not hold.

Common Confusion

An outside bar breaks the prior high and low. An engulfing pattern focuses on the body covering the prior body.

Key Takeaway

Bearish engulfing shows sellers taking back the prior green candle body. It is strongest when that takeover happens after strength and holds on the next candles.