A Bearish Engulfing pattern is two candles: a smaller up candle followed by a larger down candle whose body engulfs the previous one. It shows sellers overpowering buyers decisively, often marking the top of an uptrend.
How traders read it
- Read it as a strong bearish reversal signal.
- A full engulf of the prior body strengthens the signal.
- Higher volume on the down candle confirms the shift.
See it in dtcharts
Turn on candlestick pattern detection in the dtcharts terminal — every bearish engulfing pattern is marked on the chart with its historical reliability score, so you can judge how often it has actually played out.