Reading the market regime before prices move

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After hours
Bearish signal ▼ · 10 pattern

Bearish Engulfing

Bearish Engulfing

Bearish Engulfing is a two-candle pattern that appears at the top of an uptrend, the bearish counterpart of Bullish Engulfing. The first candle is bullish (green) and the second is a large bearish (red) candle whose real body fully engulfs the first body.

10
PATTERN ID
Signal Bearish ▼
Reliability ★★★★☆
Win Rate 63%
Expected move -4–9%
Timeframe Daily / weekly
Confirmation Self-confirming

The short answer

What is a Bearish Engulfing candle?
Bearish Engulfing (Bearish Engulfing) is a two-candle pattern that appears at the top of an uptrend, the bearish counterpart of Bullish Engulfing. The first candle is bullish (green) and the second is a large bearish (red) candle whose real body fully engulfs the first body.
How do you spot a Bearish Engulfing candle?
Both candles are inside a clear uptrend, the second candle opens at or above the first one's close, and the second candle closes below the first one's open.
Is the Bearish Engulfing candle bullish or bearish?
A bearish reversal pattern made of two candles. Confirmation: self-confirming. Its reference success rate is 63%. Did it show up in the last session? The list of symbols that formed it on their latest completed daily candle is on this page, updated after every close. Which symbols showed it? →
Pattern illustration
A large red body that fully engulfs the previous green body

How to identify the pattern

Step-by-step checks
  • Both candles are inside a clear uptrend
  • The second candle opens at or above the first one's close
  • The second candle closes below the first one's open
  • The second body fully contains the first body
  • Higher volume on the bearish candle noticeably strengthens the pattern

Trading psychology

The power struggle between buyers and sellers
Bears beat bulls in a single session, a decisive shift in control. The engulfing candle wipes out the previous session's gains entirely and goes beyond them, which shows selling pressure took over at this level and a top is likely.

Outlook and confirmation

Entry conditions and expected price move
Self-confirming, no extra candle needed
Especially strong at resistance levels, prior highs or overbought conditions. Expect -4–9% over 5–12 days. Self-confirming; entry at the close of the engulfing candle.
Ideal setting for the pattern
Overbought + resistance
Suggested timeframe: daily / weekly

Where to find it on the platform

Bearish Engulfing on the latest completed daily candle

Candle of 13 Oct 2026 · list updated 13 Oct 2026 23:10 UTC
  • DIA Close $516.21 after a five-session rise
  • LLY Close $1,166.51 after a five-session rise
  • XLF Close $54.82 after a five-session rise
  • XLV Close $169.66 after a five-session rise
Spotting a pattern is not an entry signal. The symbol opens its card with its daily chart (for members).

How it is traded in practice

A red body fully engulfs the previous green candle's body after an extended rise: sellers took over the session, from an open above yesterday's high to a close below its low. Exit or sell at the close of the engulfing candle, with the stop above its high. The strongest version forms at historical resistance on volume above the daily average, which is institutional distribution visible to the naked eye.

Common mistake

Opening aggressive shorts on every Bearish Engulfing in a strong uptrend: a pattern against the larger trend usually gives a short pullback, not a reversal. The wiser use there is taking profit and tightening a stop, not flipping to a full downtrend. And ignoring shadows: a body engulfing a body with a long lower shadow on the red candle means buyers did push back part of the attack.