Binary Signal Pattern 5

Binary Signal Pattern 5

Bearish Engulfing

A Bearish Engulfing Pattern is a bearish reversal candlestick pattern that forms after an uptrend. It appears during an uptrend and indicates that the trend may reverse. The pattern has two candles, the first day candle is small and bullish and the second day candle is long and bearish. In this pattern, the second candle completely covers the first candle, therefore it’s called the Bearish Engulfing. The pattern forms at the peak of an uptrend or in resistance areas. This pattern shows the selling pressure in the market and suggests a possible change in trend.