How to Identify Perfect Bearish Engulfing Candlestick Pattern

Bearish Engulfing Pattern is a candlestick pattern that converts an uptrend to a downtrend, but all Bearish engulfing patterns do not convert an uptrend to a downtrend, and only 100% perfect Bearish engulfing candlestick pattern converts an uptrend to a downtrend. Today, we will learn how to determine a 100% perfect Bearish engulfing pattern.

In the Bearish Engulfing candlestick pattern, the second candle completely engulfs the real body of the first day. When a small green candlestick follows a large red candlestick, a Bearish engulfing pattern can be determined. This engulfing pattern appears in an uptrend.

After forming this pattern, traders buy currency pairs and make profits in the transaction. They can only make money when the pattern becomes 100% perfect. It is important to remember that the pattern breaks some time. you should use any one of the other instruments such as support resistance, over sold over bought zones, Boolinger band, moving average, etc. to ensure that the trend reversal is in place and solid.

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