Bearish Engulfing
- Type: Reversal
- Relevance: Bearish
- Prior Trend: Bullish
- Reliability: Medium
- # of Sticks: 2
Definition:
This pattern consists of two candles. The first is a narrow range candle that closes up. The second candle is a wide range candle that “engulfs” the body of the first candle and closes near the low of the candle’s range.