Bearish Engulfing Candlestick Pattern – School

Definition of Bearish Engulfing

The Bearish Engulfing is a multiple candlestick chart pattern that consists of two candlesticks. The formation of this pattern indicates the end of an uptrend and the start of a bearish reversal.

Bearish Engulfing Explained

The Bearish Engulfing consists of two candlesticks that indicate a bearish reversal.

The first candlestick is a bullish candle that indicates the continuation of an uptrend.

The second candlestick is a bearish candle that is bigger than the first candlestick and completely engulfs it. This is how this candlestick got the name Bearish Engulfing candlestick.

Learn more about candlestick patterns.