What is Bearish Engulfing Patterns?

Bearish Engulfing Patterns refer to a situation where a bearish candlestick completely engulfs the previous bullish candlestick, indicating that the bears are in control and the market is likely to continue falling. This pattern is considered one of the reversal patterns in the market. The meaning of Bearish Engulfing Patterns can vary depending on the stage of the trend. In addition, Bearish Engulfing Patterns don’t necessarily have to consist of two candlesticks, they can also be a bearish candlestick that engulfs several small bullish candlesticks.

Strategies:

1. If the coin price has risen significantly before the Bearish Engulfing Pattern forms, the main force may have the possibility of retreating.
2. If the volume of transactions increases significantly before the Bearish Engulfing Pattern forms, it may indicate that the main force has partially retreated.
3. If the coin price continues to fall after the Bearish Engulfing Pattern forms, the bearish trend is confirmed.

As shown in the following chart：