A chart pattern that consists of a small white candlestick with short tails (or shadows) followed by a large black candlestick that eclipses or “engulfs” the small white one.
- Bearish Engulfing candles often signal a reversal from an uptrend to a downtrend, or at least a slowing down of an uptrend.
- Watch for these candles on intra-day 10-minute charts and daily charts.
