How to identify the stocks which are going to get dumped?

It is easy to find the stocks which are going to go bust and one can easily identify the stocks dooming by following the factors as listed below:
(a) Follow the cash flow of a company i.e. cash receipts should be greater than cash flow.
(b) The total debt-to-equity (D/E) ratio is a useful measure of bankruptcy risk. Companies with D/E ratios of 0.5 and above deserve a closer look.
(c) Keep track of executives and auditors resigning which means that something is going in the company which is not known to general public.
(d) Savvy investor should also watch out for unusual share price declines. Almost all corporate collapses are preceded by a sustained share price decline.
(e) Take profit warnings with a seriousness.
(f) Keep track of insider selling as it spells disaster.
(g) The debt/equity (D/E) ratio doesn't always say much on its own. It should be accompanied by an examination of the debt interest coverage ratio. For example, suppose that a company has a D/E ratio of 0.75, which signals a low bankruptcy risk, but that it also has an interest coverage ratio of 0.5. An interest coverage ratio below 1 means that the company is not able to meet all of its debt obligations with the period's earnings before interest and tax (operating income). It's also a sign that a company is having difficulty meeting its debt obligations.

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Bearish Engulfing Candlestick Pattern

Bearish Engulfing pattern is a pattern where one sees a small white candlestick with short shadows or tails followed by a large black candlestick that eclipses or "engulfs" the small white one.

Analysis
On seeing a bearish engulfing pattern one can say that it is an indication of a future bearish trend. One can get an indication by seeing this pattern that an uptrend in a stock is going to peak or slowdown in its advancement is in offing.

A word of Caution
Do remember to consider the prices of the days that precede and follow the formation of the pattern.
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Bullish Engulfing Pattern Candle Stick Explained with Chart

Bullish Engulfing Pattern Candle Stick is a chart pattern where one sees a small black candlestick on previous day and subsequent day a large white candlestick is formed which is eclipsing or engulfing the previous day's candlestick.

The point to note is that the shadows or tails of the small candlestick are short, and as a net result the body of the large candlestick is able to cover the entire candlestick from the previous day.

Significance
The significance of this chart is that stock or index has been trending downward in the short and intermediate terms and have formed a bullish engulfing pattern and thus the probability of an upward reversal in prices has increased.

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One can see Bullish Engulfing Pattern Chart for an Indian Stock to understand the price fluctuations.