Bearish Engulfing
The Bearish Engulfing is the opposite of the Bullish Engulfing.

Realistic chart representation
Look for this pattern at the end of a consolidated uptrend, preferably on a key resistance level. Do not trade against the long-term trend.
What is the Bearish Engulfing pattern?
The Bearish Engulfing is the opposite of the Bullish Engulfing. It forms when a large bearish candle completely engulfs the body of a previous bullish candle. It's one of the simplest and most reliable bearish reversal patterns. The red candle's body must open above the green's close and close below the green's open.
How do you trade Bearish Engulfing?
Why does the Bearish Engulfing pattern work?
The Bearish Engulfing is the mirror image of the Bullish Engulfing — a two-candle bearish reversal pattern that appears at the end of an uptrend. A bullish candle is completely 'swallowed' by the subsequent bearish candle: the bearish body must open above the bullish candle's close and close below the bullish candle's open. Shadows are not considered — only the bodies matter.
The pattern represents a dramatic shift in control. In one session, sellers not only absorbed all the buying pressure from the prior session but exceeded it — they pushed price below the previous opening, trapping every buyer from the prior session in a losing position. This 'bull trap' fuels the reversal as trapped buyers are forced to sell.
The relative size of the two candles is crucial. A bearish candle 2-3x larger than the bullish one is far more powerful than a 1:1 engulfing. Volume should be above average on the bearish candle, confirming that the move is backed by real participation. Bearish Engulfings at key resistance levels, especially after extended uptrends, are among the most reliable bearish reversal signals in technical analysis.