GoForex
Candlestick Patterns
Dukascopy Bank SA

or

Dukascopy Bank SA
Managed Forex Accounts
Choose from a multitude of forex traders. More
Featured Forex Brokers
Open a free demo or live account with a featured forex broker. More
AutoTrading
Copy the trades of expert traders automatically on your own account. More

Bearish Engulfing

Visual Pattern

The Bearish Engulfing Candlestick Pattern contains two candles: A white or green body candlestick, that is smaller than the second candle in this pattern. A black or red body candlestick, that is bigger than the first candle in this pattern.

Interpretation

The name of this pattern already indicates the likely direction of price afterwards, it indicates a revarsal down. Looks for this pattern in an upward trend.

Reducing Risk

You can reduce risk by waiting for confirmation that the pattern is working. You can wait until the day after the pattern has occured and the downward trend is developing. Or you can wait until you get another signal from another pattern or indication that the trend is going downward.

More Candlestick Patterns:

   

ZuluTrade Alpha Judge
Trading Services Reviews

Bookmark this page

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

©2004-2013 GoForex. All Rights Reserved. *Disclaimer | GCI Financial Warning!