A bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The pattern consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that eclipses or "engulfs" the smaller up candle.
Bearish Engulfing Potential Sell Signal:
Three ways for selling using the Bearish Engulfing Pattern from most aggressive to most conservative:
1. A Aggressive trader might sell at the close of candle
2. If there is a substantial increase in volume that accompanies the large move downward in price, a trader might view this as an even stronger indication to sell. Also, a trader might sell after the Bearish Engulfing Pattern occurs; by waiting until the next candle to sell, a trader is trying to verify that the bearish reversal pattern is for real and was not just a one candle occurrence. In the chart of TCS, trader would probably entered after the Bearish Engulfing Pattern because the selling continued. Usually trader’s wait for other signals, such as a price break below the upward support line (see: Resistance), before entering a sell order. However, in the case of TCS in chart, the Bearish Engulfing Pattern occurred at the same time as the trendline break below support.
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Bearish Engulfing Potential Sell Signal:
Three ways for selling using the Bearish Engulfing Pattern from most aggressive to most conservative:
1. A Aggressive trader might sell at the close of candle
2. If there is a substantial increase in volume that accompanies the large move downward in price, a trader might view this as an even stronger indication to sell. Also, a trader might sell after the Bearish Engulfing Pattern occurs; by waiting until the next candle to sell, a trader is trying to verify that the bearish reversal pattern is for real and was not just a one candle occurrence. In the chart of TCS, trader would probably entered after the Bearish Engulfing Pattern because the selling continued. Usually trader’s wait for other signals, such as a price break below the upward support line (see: Resistance), before entering a sell order. However, in the case of TCS in chart, the Bearish Engulfing Pattern occurred at the same time as the trendline break below support.
stay with me, learn with fun
mcpriceaction
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Perfect setup and perfect result of bearish engulfing candle
