Bearish Engulfing Pattern | Candle | Candlestick | Uptrend | Downtrend | Chart Patterns | Reversal Pattern

Bearish Engulfing Pattern | Candle | Candlestick | Uptrend | Downtrend | Chart Patterns | Reversal Pattern:¬† Hello…how are you?

Well, today in this article. I am going to talk about one of the most simple yet powerful candlestick patterns i.e Bearish Engulfing Pattern.

So, keep reading ahead Bearish Engulfing Pattern | Candle | Candlestick | Uptrend | Downtrend | Chart Patterns | Reversal Pattern.

What is a Bearish Engulfing candle?

Bearish Engulfing Pattern is a two candlestick pattern that represents that the time for buyers domination in the market is about to get over.

In Bearish Engulfing Pattern, The first candle must be small bullish after a big uptrend.

Accordingly, The second candle must be a big bearish which completely engulfs or covers the 1st bullish candle.

In the Bearish Engulfing pattern, The bears see a selling opportunity as the price may go down very soon.

It is to be noted that the Bearish engulfing pattern works best after a strong uptrend and you can make big bucks via the same If you use Indicators like RSI & more to confirm your trade.

How Bearish Engulfing candlestick pattern works?

Here, to illustrate the Bearish Engulfing pattern I am going to use IQ Option.

If you don’t have an IQ Option account. Click here.

You can also sign up via the form below.

 

You can sign up here try…

Once you click the link above you will land on the IQ Option homepage.

Now, enter your valid email, password & hit try now.

Once you have signed up you will land on the IQ Option dashboard.

Now, click on the chart button and select candlestick from the menu.

 

That’s it!! The basic setup is over.

Now, what you need to do is firstly, find a strong uptrend.

Secondly, find a small bullish body.

Lastly, Find a bearish body that completely engulfs the bullish body.

That’s it!! This is how you spot a Bearish Engulfing Pattern.

How to Trade with Bearish Engulfing Pattern?

Trading with Bearish engulfing pattern is very easy. you just need to remember how to spot a bearish engulfing pattern.

Once you spotted a strong bearish engulfing pattern later, you can take a sell trade.

Let’s check few examples.

Given above is 2 – hour chart as you can see, Firstly we see a strong uptrend later we see a strong bearish engulfing pattern.

So, here we can take a Sell trade.

Similarly, given above is a 2 – hour chart and firstly, we can clearly see a big uptrend and later a strong bearish engulfing pattern.

So, here we can take a sell trade.

How Reliable is Bearish Engulfing Pattern?

Bearish Engulfing Pattern is very easy to trade with.

However, If you want to reap the real result. I will highly suggest you to use support and resistance to confirm your trade.

While using Support and resistance what we need to look for is If we spot Bearish Engulfing Pattern near the resistance level then we should take Sell trade.

Let’s check few examples:

Given above is a 1 – hour chart, and as we clearly see that the Bearish Engulfing pattern is near the resistance level.

So, here we can take a Sell trade.

Similarly, Given above is a 1 – hour chart, and as we clearly see that the Bearish Engulfing pattern is near the resistance level.

So, here we can take a Sell trade.

Final Point:

Bearish Engulfing Pattern is two candlestick patterns that represent that the time for the buyer’s domination is about to get over.

In Bearish Engulfing Pattern, the first candle must be bullish and the second candle must bearish a candle that completely engulfs the bullish candle.

Trading with Bearish Engulfing Pattern is very easy. You just need to remember How to spot the Bearish Engulfing pattern.

However, If you want to reap the real results with Bearish Engulfing Pattern. then I will highly suggest you use to support and resistance for trade confirmation.

This article was all about Bearish Engulfing Pattern, Bearish Engulfing Candle, Bearish Engulfing Candlestick, Bearish Engulfing Uptrend, Bearish Engulfing Downtrend, Bearish Engulfing Chart Patterns, Bearish Engulfing Reversal Pattern

 

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