Bearish Engulfing Pattern

Bearish Engulfing Pattern

In candlestick charting, a pattern with a small, white candle (representing a trading day with a gain) followed by a larger, black candle (representing a trading day with a loss). The opening price and closing price in the black candle must both be higher than those in the white candle. A bearish engulfing pattern usually, but does not always, comes during a bullish trend; it may be a signal that the trend is peaking and is about to become bearish.
References in periodicals archive ?
A bearish engulfing pattern consists of two candlesticks.
A bearish engulfing candle formed in the USDCHF in March, signaling the potential for additional losses (some may disagree with me here, claiming that a bearish engulfing pattern did not form because March's close was not beneath that of February's low.
Friday's close produced a large Bearish Engulfing pattern, suggesting the corrective rally is now over and the downtrend ready to resume.