📉 Bearish Engulfing: 72% Success Rate in Predicting Reversals 🔥

When it comes to spotting a potential market top, the Bearish Engulfing pattern is one of the most reliable signals out there — with a 72% success rate, according to a study by the Technical Analysis Research & Education (TARE) Foundation.

🔍 What is a Bearish Engulfing Pattern?

It’s a two-candle formation:

🟢 A small bullish candle (buyers in control).

🔴 A larger bearish candle that completely engulfs the body of the first candle.

This pattern signals that sellers have overtaken buyers, indicating a shift in market momentum — and often appears at the top of an uptrend, suggesting a potential reversal is ahead.

📊 Why it Matters:

✅ Proven reliability: 72% success rate in bearish reversals.

📈 Shows increased selling pressure and potential trend change.

⏳ Typically used to exit long positions or prepare for shorts.
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