- Bearish Engulfing ~ must be heading in an uptrend, with the body of the second red bearish candlestick opening above the first bullish candlestick but then closing below it, so it fully engulfs that first candlestick, with confirmation being a further third bearish candlestick opening below the second bearish red candlestick. The physcology is that the bears have stamped there authority on proceedings and pushed the price back down, and the key is in the bears getting that price BELOW the bullish candlestick, its like, av some of dat dickeds, and don’t forget the further confirmation and what that further confirmation candlestick is telling you (ie. is it even more bearish again)
One reason for that reversal is that the bulls might be taking profits, especially if its a big run up
To compare as to what type of pattern is stronger, take a look at the Dark Cloud Cover an compare it to the Bearish Engulfing, AND ANALISE EXACTLY WHATS HAPPENING, you will see that the Dark Cloud Cover is a pretty strong pattern pushing below/above that 50% level, but the control is not fully taken by the bears as the bulls prevent the bears from pushing even lower, however, with the Bearish engulfing, the bears total crush any resistance showed by the bulls by completely overwhelming there initial bullish attempt at progressing, again though, you will need to look for even further confirmation
IS YOUR BEARISH ENGULFING ON A LINE OF RESISTENCE, which would make it stronger
F=MA 