A bearish engulfing pattern is a chart pattern through which we can predict that uptrend is going to be end and now downtrend may be start so it is called one of bearish reversal pattern .
A bearish engulfing pattern
It is very often seen on daily, weekly, monthly chart candle consists of a small white candlestick with short shadows or tails followed by a large black candlestick that eclipses or "engulfs" the small white one so it called bearish engulfing pattern.
In other words One small white candle and next candle large black candle that engulf the previous candle.
Some confirmation required before or after bearish engulfing pattern formed
1. Bearish engulfing pattern should be formed in Uptrend
2. If there is previous resistance above the Bearish engulfing pattern then it is good.
3. When Bearish engulfing pattern formed further downside follow through, such as a gap down, long black candlestick or high volume decline.
At least above three have to confirm before taking any trades.
we can analyse the Bearish engulfing
patterns on Nifty weekly chart 2011 to 2013.
A bearish engulfing pattern
It is very often seen on daily, weekly, monthly chart candle consists of a small white candlestick with short shadows or tails followed by a large black candlestick that eclipses or "engulfs" the small white one so it called bearish engulfing pattern.
In other words One small white candle and next candle large black candle that engulf the previous candle.
Some confirmation required before or after bearish engulfing pattern formed
1. Bearish engulfing pattern should be formed in Uptrend
2. If there is previous resistance above the Bearish engulfing pattern then it is good.
3. When Bearish engulfing pattern formed further downside follow through, such as a gap down, long black candlestick or high volume decline.
At least above three have to confirm before taking any trades.
we can analyse the Bearish engulfing
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