Bearish Engulfing Pattern

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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.
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That said however, there are 572 companies with bullish engulfing patterns, compared to 128 companies with bearish engulfing patterns.