bearish engulfing pattern
A bearish engulfing pattern is a technical analysis signal that indicates a potential reversal in a stock's price trend from bullish to bearish. This pattern occurs when a smaller bullish candle is followed by a larger bearish candle that completely engulfs the previous one. Traders often interpret this as a sign that sellers are gaining control over the market.
The bearish engulfing pattern typically appears at the end of an uptrend, suggesting that the upward momentum is weakening. It is important for traders to confirm this pattern with additional indicators or volume analysis to increase the reliability of the signal before making trading decisions.