Bearish Engulfing Pattern

The Bearish Engulfing pattern is a commonly used candlestick pattern in technical analysis, indicating a potential reversal in an uptrend.

The Bearish Engulfing pattern consists of two candles:

1. First Candle: A smaller bullish candle (green or white), representing the continuation of the current uptrend.
2. Second Candle: A larger bearish candle (red or black) that completely engulfs the body of the first candle. This candle opens above the close of the first candle and closes below its open, indicating strong selling pressure.

Characteristics of the Bearish Engulfing Pattern

• It typically appears at the top of an uptrend.
• It signals that the bears (sellers) are taking control, potentially reversing the current uptrend to a downtrend.
• The larger the engulfing candle compared to the previous candle, the stronger the reversal signal.

Follow these steps to identify and analyze the Bearish Engulfing pattern:

1. Load the Chart for the Asset:

   • Open the platform.
   • Search for and load the chart of the asset you wish to analyze.

2. Set the Timeframe:

   • Select a timeframe that fits your analysis needs (daily, weekly, or longer intervals are ideal for spotting Bearish Engulfing patterns).

3. Select the Candlestick Chart:

   • Ensure the chart type is set to “Candlestick” to properly visualize the pattern.

4. Use the Pattern Recognition Tool:

   • Click on the FX Study section available on the platform interface.
   • From there, navigate to the Candlestick Pattern menu.
   • Choose the Bearish Engulfing Pattern from the list of available patterns.
   • The system will automatically highlight the Bearish Engulfing patterns on the chart, making it easier to identify potential trend reversals.