If a red candlestick completely covers the body ,wick and tail of the previous green candlestick, then it is a Bearish Engulfing.
When Engulfing occurs after an opposite trend, then it is a powerful pattern, signifying a trend reversal. Entry should be placed at the lowest price of the Engulfing candle. Stop loss should be placed at the highest price of the Engulfing candle. The difference between the entry and stop loss is calculated. Target should be 2 or 1.5 times of the difference. Here target is placed twice the difference.
