The Bearish Engulfing Candlestick is a powerful bearish reversal candle pattern.
The Bearish Engulfing Candlestick Pattern is a bearish reversal pattern, usually occuring at the top of an uptrend. The pattern consists of two Candlesticks:- Smaller Bullish Candle (Day 1)
- Larger Bearish Candle (Day 2)
Intra-day Bearish Engulfing Pattern
The following 15-minute chart of Verizon (VZ) is of the 2-day period comprising the Bearish Engulfing Pattern example on the prior page:
- Day 1: As is seen in the chart above, Day 1 was an up day, closing near the day's high (bullish sentiment).
- Day 2: The open was a gap up, a very bullish sign; nevertheless, the bulls ran out of buying pressure and prices fell the rest of the day, closing near the day's lows (bearish sentiment) and lower than Day 1's lows.
