The bearish engulfing candle that leads to selling in the cryptocurrency market
Formation of the pattern:
The pattern consists of two candles.
The first candle is bullish, and the second candle is bearish and closes below the opening level of the first candle. The lower the close is from the opening price of the first candle, the better.
The pattern occurs at the end of an uptrend to indicate the possibility of a reversal.
It is preferable that the lower wick of the second candle is shorter than that of the first candle, and that it is the lowest price in the preceding movement.
Shape of the pattern: Traders should practice on this candle to benefit from the drop and also benefit from the rise. I will give you examples of other candles because candles are the greatest indication of the strength of selling or buying.