Updated: Sep 17, 2020
Basics of bearish engulfing pattern
The Bearish engulfing pattern is a 2 candle combination candlestick pattern. This candlestick pattern showing 2 candles first candle tail and body small and second is a engulf bearish candle very important second cover first candle whole body. Its called bearish engulfing candlestick pattern.
This is The pattern is very useful this is not a rare candlestick pattern most of The time easily show bearish engulfing candlestick pattern on the chart.
Interpretation of bearish engulfing pattern
As per its name, this candlestick pattern indicates you higher point market this candlestick pattern asking your bullish trend is over and possibility is bearish trend start at in this level. The bearish engulfing pattern gives you up to 50 to 60 percent accuracy and this is not a rare candlestick pattern this candlestick pattern easily show. If bearish candlestick pattern show and after this pattern price gives closing with downside breakout its is very powerful sell & short sell signal. Bearish candlestick pattern showing you buyer’s and seller’s thinking in this market. Very big trader’s using candlestick pattern in The financial market for more accuracy and the bearish engulfing pattern is part of this game. Candlestick pattern is a first indication show market what will do. Trading Chanakya hopes this candlestick pattern help you more effective trading decision.
How & why bearish engulfing pattern work
This candlestick pattern showing you who more powerful at this time on the market like – buyer and seller?. First small body candle showing indecision situation on market it’s mean buyer and seller not clear what to do both apply wait to watch policy. So this is a very important part of this engulfing pattern because nobody judge market what will do and second bearish candle indicated sellers very powerful. So this is a very powerful interpretation bearish trend starting. we hope you understand bearish engulfing pattern interpretation and how & why work.