Bearish Engulfing
A two-candle reversal where a large down candle completely engulfs the prior up candle's body — momentum has flipped to sellers.
In a bearish engulfing, a small green (up) candle is followed by a larger red (down) candle whose body opens at or above the prior close and closes below the prior open, fully covering it. The swing from buying to heavy selling in one session is the warning.
It carries the most weight after a rally or at resistance, on rising volume. It's the bearish mirror of the bullish engulfing.
On StockSetups
Bearish engulfing is in StockSetups' bearish candlestick set; on a long-only board it flags fading momentum on an extended name rather than a short signal.
Related terms
See bearish engulfing on tonight's board.
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