Back to the encyclopediaSchematic illustration – idealized candles.
Two candlesBearishReliability: high
Bearish Engulfing
Also known as: Bearish Engulfing Pattern
A large red candle completely engulfs the body of the previous green one – after an uptrend, a strong bearish reversal signal.
What it looks like
First a smaller green candle, then a red one whose body fully covers the green one's.
What it means
Sellers have taken control and wiped out the entire prior gain.
How it is traded
Short entry at the close of the engulfing candle or on a break of its low; stop above the shared high.
Where & when – and the limits
Strongest at resistance after an uptrend, ideally with high volume.
Related patterns
Education, not investment advice. Candlestick patterns are hints, not guarantees – they need confirmation and context (trend, levels, volume). Always manage risk with stop-loss and position size.
Learn more in the academy