Forex Candlestick: Bearish Engulfing Pattern
Posted by Edward Dy on August 18th, 2008
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We’re back again with candlestick patterns. In this candlestick chart pattern, the market must be in clearly defined uptrend.
Take a look at the picture, can you identify which one the bullish candle is? It’s the first candle. The second one is a bearish candle.
Photo credit: Sirifin
Here you can clearly see the bearish candle engulfing the other candle’s body.
Here, it doesn’t matter what candle size the other one engulfed. Also, you can safely ignore the wicks.
Keep in mind that whenever you see a bearish candle swallowing the bodies of two or three other candles, then that’s a very strong bearish signal. This means that this could be a start of a new bearish trend.
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