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*Bearish Candlestick Patterns* Number 3👇
3 - Bearish Engulfing Pattern
This candle is the opposite of the Bullish Engulfing Pattern, where the price rises through a relatively long candle, and it is preferable that the shadows of this candle are very small, then a bearish candle comes in, opening above the close of the previous bullish candle, but it declines and closes below the opening of the previous bullish candle. Thus, we see that the second bearish candle should be longer than the bullish candle. This image illustrates the pattern:
It is worth noting that this candle is considered one of the strong candles that indicates a potential decrease in price, especially if this candle forms at resistance levels.