The bearish engulfing is the mirror image: a large red candle engulfs the previous green candle's body, showing sellers taking control after an uptrend.
At resistance and with strong volume, it is a warning for traders holding long positions to consider exiting or booking profit.
▶ Practice the Bearish Engulfing pattern free →It only counts after a clear uptrend. Two candles: first a small green (bullish) candle continuing the rise, then a large red (bearish) candle whose body completely engulfs the previous candle's body.
The strongest version opens at or above the previous close and closes below the previous open, on rising volume. As always, judge by the body-to-body relationship, not the wicks.
Wait for the red engulfing candle to close before acting — patience here filters out a lot of false signals.
Entry: after the candle closes, or on a break below the pattern's low. Stop-loss: above the high of the two-candle pattern (or above the nearby resistance). Target: the next support, at a minimum 1:2 risk-reward. Keep risk to 1–2% of capital.
It is most reliable at a resistance level and on higher timeframes; on a 1-minute chart expect many false signals. It pairs well with a confirming next candle or volume. Compare it with the shooting star and evening star, which are also bearish reversals, and with its mirror, the bullish engulfing.
Trading it in a range with no prior uptrend — there is no reversal to profit from.
Looking at raw candle size rather than whether the second body engulfs the first.
Skipping confirmation, and relying on it on very short timeframes. Paper trade it first before committing real capital.
Is a bearish engulfing bullish or bearish?
It is a bearish reversal pattern. It suggests an uptrend may be ending and sellers are taking control. Its bullish mirror image is the bullish engulfing.
How reliable is the bearish engulfing pattern?
It is one of the more trusted reversal signals, but only in context — after a clear uptrend, ideally at resistance, confirmed by volume. Higher timeframes are far more reliable than 1-minute charts.
What is the difference between a bearish engulfing and a bearish harami?
In a bearish engulfing the second (red) candle engulfs the first. In a bearish harami the second candle is small and sits inside the first candle's body.
Where does the bearish engulfing work best?
After a clear uptrend, at a strong resistance or supply level, on the daily or higher timeframe, with above-average volume on the engulfing candle.
See all patterns in our candlestick patterns guide, or jump straight into the free trainer to test yourself.