Bearish Engulfing candle: when the market engulfs the greed of buyers!

In a moment, optimism turns to concern, and the market begins to send a strong signal that the uptrend is over. Here comes the Bearish Engulfing candle to assert its presence amidst the charts, saying: 'Beware, the drop is coming!'

Candle shape:

Consists of two candles:

  • First candle: Bullish (small body).

    • Second candle: Bearish (long body completely engulfs the first candle's body).

Shadows are not as important as bodies.

What does it mean?

This candle indicates that the market was bullish at first, but sellers entered strongly in the next session and engulfed all the gains of the previous day — a signal of potential selling pressure.

Where does it appear?

Appears at the end of bullish trends.

  • Its strength increases the more it appears after a strong rise or at a major resistance.

When to enter the trade?

After additional confirmation: like breaking a nearby support or confirmation from an indicator (RSI exceeds 70 then drops).

Target: gradual profit-taking, and the stop-loss above the high of the second candle.

📝 Note: This candle was present on the currency $BTC on the daily timeframe on May 23 before the current drop.

#candlestick_patterns #Learn #LearnFromMistakes #LearnTogether #learn2earn