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Bearish Engulfing candlestick pattern

A small bullish candle followed by a larger bearish candle whose body completely covers the first. Sellers wiped out the prior session's buying and then some.

Bearish reversal two-candle · Intermediate

Illustrative shape. Real patterns vary in proportion.

How to identify a Bearish Engulfing

  • Appears after a rally
  • First candle is bullish (green)
  • Second candle is bearish (red) and opens at or above the first's close
  • Second body fully engulfs the first body

What the Bearish Engulfing tells you

Buyers look in control on day one. Day two opens strong, then sellers take over and close price below the first candle's open. The uptrend's momentum has been decisively overpowered.

How traders use it

Traders look for it at resistance or after an extended rally, with heavier volume on the engulfing candle. Stops commonly go above the pattern's high.

Before taking any pattern-based trade, decide your stop first and size the position from it with the position size calculator.

Related patterns

Frequently asked questions

Is the Bearish Engulfing bullish or bearish? +

The Bearish Engulfing is a bearish reversal pattern. A small bullish candle followed by a larger bearish candle whose body completely covers the first. Sellers wiped out the prior session's buying and then some.

How reliable is the Bearish Engulfing? +

No candlestick pattern works every time. Patterns are more reliable when they form at a meaningful level (support, resistance, a moving average), after a clear trend, on higher volume, and when the next candle confirms them.

Do I need confirmation to trade the Bearish Engulfing? +

Most traders want it. Waiting for the next candle to move in the expected direction filters out many false signals, at the cost of a slightly worse entry price.

All candlestick patterns · Learn hub

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