Bearish Engulfing Pattern
The bearish engulfing is a two-candle reversal pattern that signals potential downward momentum.
Last reviewed: 2026-03-06
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Overview
The bearish engulfing forms when a red candle's body completely engulfs the body of the previous green candle. It suggests sellers have overwhelmed buyers. The pattern is more reliable at resistance levels and in uptrends. It is the opposite of the bullish engulfing.
How To Identify
- First candle: green (bullish), any size.
- Second candle: red (bearish), opens at or above prior close, closes below prior open.
- The red body must fully contain the green body. Wicks can extend beyond.
Trading Tip
Wait for confirmation: a close below the engulfing candle's low, or a pullback to the pattern area that fails. Use a stop loss above the pattern high. Works best at resistance and after a clear uptrend.
Knowledge check
1 of 3The bearish engulfing is the opposite of:
FAQ
Common questions about this topic.
What is the difference between bearish and bullish engulfing?
Bearish engulfing: red candle engulfs green—signals potential downtrend. Bullish engulfing: green engulfs red—signals potential uptrend.
Where does bearish engulfing work best?
At resistance levels and after an uptrend. Context matters—the pattern is more reliable when it aligns with key price levels.
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Disclaimer and sources
Educational content only. Not financial advice.
Important disclaimer
Forex trading involves risk. This content is for educational purposes only.