A Quick Overview of Bearish Engulfing Pattern
At the end of an upswing, a bearish engulfing pattern appears. The first candle has a little green body that is devoured by a lengthy red candle that follows. This is an indication of an imminent market slump since it indicates a surge or pause in price movement. The trend is more likely to be substantial if the second candle is lower. According to Bulkowski, this reversal predicts lower prices with an 82% accuracy rate.
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