š¢Hey Trader, Meet the Candle That Eats Bulls ā The Bearish Engulfingš
Hey trader,
Let me introduce you to a powerful yet simple pattern that every smart trader should know ā the Bearish Engulfing Candle.
Think of it like this:
Youāre watching an uptrend, things look bullish, and suddenly ā boom ā a massive red candle shows up and completely swallows the previous green candle. Thatās your signal. The bulls just got overpowered.
Hereās how it works:
The first candle is green (buyers still hopeful).
The second candle is red ā and itās bigger than the first, engulfing it from open to close.
This means sellers just stepped in with full force.
This pattern shows up at the top of a rally and shouts:
āReversal incoming!ā
Itās one of my favorite weapons to spot potential dumps and make entries with confidence.
Quick tip for you:
Use this pattern near resistance zones, and always confirm with volume or indicators. When it lines up⦠trust me, it hits hard.
So next time youāre charting, keep your eyes open. That one candle could be your ticket to catching the perfect short move.
Trade smart,
ā Your fellow trader at Pandatraders