2-candle pattern · bearish bias
Bearish Engulfing candlestick pattern
A bearish engulfing pattern is a green candle followed by a larger red candle whose body completely covers the green body. It shows sellers taking over after an advance.
How to identify it
- A prior advance.
- A green candle.
- A red candle that opens at or above the green close and closes below the green open.
Where it matters: Appears after an advance, near a high.
What it means
A shift from buyers to sellers.
What confirms it
A following candle that stays below the engulfing candle's midpoint or closes lower.
What invalidates it
A close above the high of the engulfing pattern.
Common mistakes
- Using it in the middle of a range.
- Ignoring a strong higher-timeframe uptrend.
Frequently asked questions
Is bearish engulfing reliable?
It is widely watched, especially near resistance after an advance, but it can still fail.
Where is a bearish engulfing invalidated?
A close above the pattern's high.
Related candlestick patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.