Forex

Bearish Engulfing Pattern | Candlestick Pattern | Meaning | Reliability | Uptrend | Downtrend & more: Hello….how are you.

Well, today In this article? I am going to talk about one of the most powerful candlestick patterns, i.e Bearish Engulfing Pattern.

So, keep reading ahead Bearish Engulfing Pattern | Candlestick Pattern | Meaning | Reliability | Uptrend | Downtrend & more

What is Bearish Engulfing Pattern?

 

Bearish Engulfing Pattern is just the opposite of the Bullish Engulfing Pattern.

Bearish Engulfing pattern is the first big bearish candle that appears after the long series of the green or bullish candle.

If we see a continuous green candle and later a strong Red candle that engulfs the last green candle then we can say that it is Bearish Engulfing Candle.

 

How to Find Bearish Engulfing Pattern?

To illustrate Bearish Engulfing Pattern I am going to use Binomo.

If you don’t have a Binomo account. Click here.

You can also sign up via the form below.

You can sign up here try…

Once you click the link above you will land on the Binomo homepage.

 

Now, click on the give it a try and enter your email, password, select currency & more.

 

Once you have signed up you will land on the Binomo dashboard.

Now, click on the chart button and select Candlestick from the menu.

Now, talking about  How to Find Bearish Engulfing Pattern? well, it’s damn very easy.

Firstly what you need to do is find a good uptrend.

 

Secondly, find the red candle that engulfs or covers the green candle.

 

That’s it!! It’s that easy to find a bearish engulfing pattern.

How to trade with Bearish Engulfing Pattern?

Here, I assume that you at least know the basics of support and resistance.

If you don’t know, click here.

Trading with a bearish engulfing pattern is very easy.

The golden rule of Bearish Engulfing Pattern says:

If we see a bearish engulfing pattern plus if the candle is near the resistance level then we should go for a sell trade.

Let’s check few examples.

Given above is – hour chart and we can clearly see above the bearish engulfing pattern plus it is near the resistance level. so, here we can take a Sell trade.