Bearish Engulfing / 陰の包み線・陰線つつみ
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A two-candlestick pattern appearing during an uptrend where the second candle's large bearish body completely engulfs the first candle's small bullish body. It indicates that buying pressure has weakened and sellers have seized control, serving as a reversal signal to the downside.
Enter short after confirming the engulfing pattern (second candle's close), at the open of the next candle. Or enter when price drops below the second candle's low.
Target the nearest support line, or project 1.5-2 times the engulfing pattern's range (second candle's high to low) downward.
Place a stop-loss slightly above the engulfing pattern's high (second candle's high).
Significantly increased volume on the second bearish candle is important. Greater volume increase indicates stronger seller participation.