🔴Understanding the Bearish Engulfing Pattern in Trading

📌 What is a Bearish Engulfing Pattern?

•The Bearish Engulfing is a 2-candle pattern that signals a potential trend reversal to the downside.

It shows that sellers have taken control after a period of buying.

🕯️ Structure of the Bearish Engulfing:

Candle Description

•1st Candle Small green (bullish) candle – shows buyers were active.

•2nd Candle Large red (bearish) candle that completely covers (engulfs) the body of the first green candle.

🧠 "Engulfing" means the second candle is so big that it swallows the previous one.

📈 ➡️ 📉 What It Means:

•The market was moving up (bullish).

•Then a strong bearish candle appears and takes over.

•This shift shows sellers are back in control, and the price may start falling.

✅ Beginner Tips:

•Look for this pattern after an uptrend.

•Strongest when:

•The red candle has high volume.

•It happens near a resistance level.

•Always wait for confirmation (another red candle or technical indicator like RSI dropping).

📊 Simple Example:

•Imagine BNB was rising nicely.

•Day 1: A small green candle forms.

•Day 2: A big red candle opens higher, but closes much lower – completely engulfs the green candle.

That's a Bearish Engulfing Pattern → warning sign that the price might reverse and drop. 🚨

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