How to confirm bearish engulfing candle?

To spot the Bearish Engulfing pattern, traders need to observe a clear uptrend that is currently in motion. This pattern typically emerges after a series of consecutive higher highs and higher lows, indicating that buyers are in control.

The formation begins with the appearance of a white (bullish) candlestick. This candlestick represents a period of buying pressure, with the opening price lower than the closing price. It signifies that bulls have driven the price up during the session.

Following the white candlestick, a black (bearish) candlestick emerges. This candlestick is characterized by an opening price that is higher than the previous day's closing price, but the closing price ends up lower than the opening price.

The key feature of the Bearish Engulfing pattern is that the black candlestick completely engulfs the previous white candlestick. This means that the range of the black candlestick (from its opening to closing price) is larger than the range of the white candlestick.

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