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Bearish engulfing

A large red candle whose body completely covers the prior green candle's body.

CandlesticksBeginner

Definition

It forms when sellers overwhelm the prior day's buying, and it is more notable after an advance and near resistance. On higher time frames, such as weekly or monthly charts, it carries more weight than on short ones.

Watch out for

Like other candle patterns, it works as context, not a standalone signal.

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