What is Bearish Engulfing Candlestick Pattern? The Bearish Engulfing candlesticks pattern indicates the potential reversal in an uptrend and signals the change in the market momentum from bullish to bearish, using a two-candlestick formation. The bearish engulfing is a bearish chart pattern . Learn its meaning, trading strategy, examples, risk management, and related patterns. What is a Bearish Engulfing Candlestick? A bearish engulfing candlestick is a technical chart pattern that occurs when a small bullish candlestick is followed by a larger bearish candlestick that completely engulfs the previous candlestick, including its shadows, signaling a trend reversal. Bearish engulfing is a frequently used candlestick pattern that traders refer to as a bearish trend reversal indicator after an extended uptrend . It appears at the end of an uptrend within a chart and is an essential concept of technical analysis.
