This pattern is strongly bearish if it occurs after a significant up-trend (i.e., it acts as a reversal pattern). It occurs when a small bullish (empty) Candle is engulfed by a large bearish (filled-in) Candle.
This pattern is made of two consecutive candlesticks. The word engulfing signifies that the body of second candlestick has engulfed the first candlestick.
Two things clearly visible in this pattern are
1> First Candlestick is small in size while the second one is big in size.
2> Fist Candlestick is white while second one is black.
Can you guess what does this means? Yes, price in second candlestick has gone above the High of first candlestick & yet has come down and finished well below first candlesticks Low. This is Bearish signal.
Candlestick Chart Patterns
Candlestick
Patterns Long White Candle
Candlestick
Patterns Long Black Candle
Candlestick
Patterns Hammer
Candlestick
Patterns Piercing Pattern
Candlestick
Patterns Bullish Engulfing Pattern
Candlestick
Patterns Morning Star
Candlestick
Patterns Bullish Doji Star
Candlestick
Patterns Hanging Man
Candlestick
Patterns Dark cloud cover
Candlestick
Patterns Bearish Engulfing Pattern
Candlestick
Patterns Evening star
Candlestick
Patterns Doji Star
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