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Bearish Engulfing Pattern | Candle | Chartlink | Candlestick | Strategy | Reversal & more

(Last Updated On: September 20, 2021)

Bearish Engulfing Pattern | Candle | Chartlink | Candlestick | Strategy | Reversal & more:

Hello…how are you?

Well, Today in this article I am going to cover one of the most famous candlestick patterns i.e Bearish Engulfing Pattern.

With the Bearish engulfing pattern, you can make a lot’s of quick bucks.

So, keep reading ahead Bearish Engulfing Pattern | Candle | Chartlink | Candlestick | Strategy | Reversal & more

Bearish Engulfing Pattern Meaning 

 

Bearish Engulfing Pattern is a technical chart pattern used by traders to find the potential uptrend reversal.

The Bearish Engulfing Pattern is a two candlestick pattern that signals the uptrend reversal where the first candle is bullish and the second is bearish that completely engulfs or covers the first bullish candle.

According to the stock market experts, The Bearish Engulfing pattern works best after a strong uptrend.

However, you should always use an alternative indicator to measure the strength of trend reversal.

How to spot Bearish Engulfing Candlestick Pattern?

 

Here, to illustrate the Bearish Engulfing candlestick. I am going to use Olymp Trade.

In case you don’t have an Olymp Trade account. Click here.

You can also sign up via the form given below.

 

 

Once you click the link above you will land on the Olymp Trade homepage.

 

 

Firstly, click on register.

 

 

Now, fill in your details.

 

 

Once you signed up you will land on the Olymp Trade dashboard.

 

 

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

 

 

That’s it!!! The basic setup is over.

 

 

Now, what you need to do is firstly, find a good uptrend.

 

 

Secondly, find a two candlestick pattern following a small green candle engulfed by a big red candle.

 

How to Trade with Bearish Engulfing Candle?

 

Trading with Bearish Engulfing Candle is very easy.

However, If you want to reap the real results. You should Bearish Engulfing Candlestick with RSI.

To set up RSI, Firstly, Click on the Indicator button and select RSI from the given menu.

Now, what you just need to remember is that If we spot the Bearish Engulfing Pattern near the overbought level in RSI. then we should go for a sell trade.

Let’s check few examples.

 

Given above is 1- hour chart and we can clearly spot a bearish candlestick engulfing candlestick near the overbought level in RSI.

So, here we can take a Sell trade.

 

Similarly, Given above is a 1-hour chart and we can clearly spot a bearish engulfing candle near the overbought level in RSI.

So, here we can take a sell trade.

Final Point:

Bearish Engulfing candlestick candle is the two candlestick pattern that helps us to find possible uptrend reversal.

Spotting and trading with Bearish engulfing candlestick candles are very easy.

Firstly, you need to find a good uptrend as the Bearish Engulfing candle works best after a strong uptrend.

Secondly, find a two candlestick pattern with the first candle as a small red body and the second candle which completely engulfs the first red candle.

According, to the experts you should always use the bearish engulfing candle with an alternative indicator for the best results.

So, this is the end of this article. I hope you have found this article helpful.

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