Bearish Engulfing Pattern
A Bearish Engulfing Pattern is a technical analysis signal that indicates a potential reversal in a bullish trend. It occurs when a small bullish candle is followed by a larger bearish candle that completely engulfs the previous one. This pattern suggests that sellers have gained control, and it often signals a shift in market sentiment.
Traders often look for this pattern at the top of an uptrend, as it can indicate that the price may start to decline. The Bearish Engulfing Pattern is considered more reliable when accompanied by high trading volume, reinforcing the strength of the bearish signal.