P
PipsGrowth

Key Takeaways

Success Rate:75%
Difficulty:Beginner
Strength:
R:R Ratio:1:2.5
📉

Bearish Engulfing

bearish reversalVery High Reliability2 Candles

A large bearish candle completely engulfs the previous bullish candle. One of the most reliable bearish reversal patterns.

Market Psychology

Bears have overwhelmed bulls, completely reversing the previous gains and establishing control.

Candle Structure

1st2nd

Trading Setup Example

Entry, stop loss, and take profit levels.

How to Trade the Bearish Engulfing PatternTake Profit📥 EntryStop LossPatternConfirmEnterSELLPatternConfirmEnterSL/TP

Always wait for pattern confirmation before entering a trade.

Where This Pattern Appears

Trend context and market position.

UptrendBearish EngulfingReversal ↓

Appears at the top of an uptrend, signals bearish reversal.

How to Identify

1

First candle is bullish (green/white)

2

Second candle is bearish and completely engulfs the first

3

Second candle opens above and closes below first candle body

4

Appears at the top of an uptrend

Confirmation Signals

RSI overbought (>70)
At key resistance
Volume spike
Bearish next candle

Trading Strategy

📥 Entry

Enter short at close of engulfing candle or next candle open

🛑 Stop Loss

Place stop above the engulfing pattern high

🎯 Take Profit

Target previous support levels or swing lows

⚖️ Risk/Reward

1:2.5

Common Mistakes to Avoid

Trading without prior uptrend
Not waiting for confirmation
Ignoring volume
Fighting strong trend

Pro Tips

💡Larger engulfing candle = stronger signal
💡High volume on engulfing candle confirms selling pressure
💡More reliable at key resistance levels

Best Timeframes

4HDailyWeekly

Pattern Variations

At resistance level (stronger)
With gap open
آخر تحديث: ٢٩ ديسمبر ٢٠٢٤

إخلاء مسؤولية تعليمي

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Frequently Asked Questions