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What is a Bearish
The bearish engulfing pattern is made of two candlesticks, a white first and then a black. The white candlestick should not be so small that it would be too easy to engulf. The second should be a long black candlestick – the bigger it is, the more bearish. The black body must engulf the entire body of the first white candlestick. The significance of the engulfing candle is increased by two factors: the size of the candle and the volume on the day it appears. The bigger the engulfing candle, the more significant. A large bearish engulfing candle shows the bears have taken control of the market after an uptrend. If volume is above normal when the signal is given, the signal is more powerful.
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