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Bearish Engulfing Candlestick Pattern

Posted By On 7/12/2009 11:44:00 AM Under ,

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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