Trends/Candlestick patterns

Bearish engulfing

A falling candle whose body fully covers the body of the previous rising candle.

Candlestick patternsBest on 3M, 6MAlso called engulfing pattern

Illustration of the bearish engulfing shape. It is a sketch, not real price data.

What it shows

A bearish engulfing pattern has two bars. The first is an up bar. The second is a down bar that opens at or above the first bar's close and closes at or below the first bar's open. It appears after a rise.

The second body covers the first. The name is a convention for the shape.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Bar 1: close above open, after a rise.
Bar 2: close below open.
Bar 2 open ≥ bar 1 close and bar 2 close ≤ bar 1 open.
Mark both bars.

Starting values: Bars 2; Prior rise 5 bars. These are proposed and will be tuned on real price data before launch.

How to read it

The gold zone covers the two bars.
The second candle is taller than the first.
Candles before it rise.

Status labels you may see

Label	What it means
Today	Rule met with the last two bars.
Recently	Within the last 5 bars.
None	Not found.

What cancels it

Nothing cancels it.

What traders check next

Size of the second bar.
Volume.
Next bar.

Limits

Common.
Outcomes vary.
Needs a prior rise.

Try it in forecastviz

Open any ticker and choose Candlestick patterns → Bearish engulfing in the left menu.
Switch between 3M, 6M to see how the picture changes.
Compare with Bullish engulfing and Dark cloud cover on the same chart.

Open on a ticker

Questions

Is it a Sell signal?

No. It is a shape.

Does the next bar matter?

Traders look at it as confirmation.