Bearish engulfing candle
A large bearish body covers the prior bullish body, showing sellers taking control of that candle sequence.
Educational example of a bearish engulfing candle. Real charts are messier — the shape is the idea, not a template.
What confirms it
It forms at resistance or after a rally, with the next candle staying below its midpoint or low.
Common trap
Shorting every engulfing candle. In a strong uptrend it may only produce a shallow pause.
Read it in five checks
- 01Trend: Is the higher chart rising, falling or ranging?
- 02Location: Is the setup at real support, resistance or structure?
- 03Close: Did a full candle close beyond the trigger level?
- 04Invalidation: Where does the chart prove the idea wrong?
- 05Reward: Is there enough clear space before the next barrier?
A chart pattern describes price behaviour; it does not predict the next candle. Use it with a trend filter, a defined stop and a tested risk-reward rule. Educational examples only — not trading advice.
More candlestick setups
A large bullish body covers the prior bearish body, showing a sudden shift from selling to buying pressure.
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A long wick shows price explored a level and was firmly pushed back. The close reveals which side rejected the move.
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