The following conditions meet the criteria for bearish engulfing:
– It usually occurs at top of uptrend
– small green candle(day1) followed by large red candle (Day2) which engulfs the bullish trend
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The following conditions meet the criteria for bearish engulfing:
– It usually occurs at top of uptrend
– small green candle(day1) followed by large red candle (Day2) which engulfs the bullish trend
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Hi,
Bearish engulfing pattern is the trend reversal pattern. Short position should be created if the bearish engulfing occurs.
Thank you for correcting me.When you get time, request you to review my other analysis and let me know if i was wrong.