So, friends who are still learning technical analysis, this time I want to explain that the bearish engulfing is one of the candlestick patterns that is quite important to watch.

In short, engulfing is a pattern where the previous candle is completely covered or overshadowed by the body of the next candlestick. What you need to remember is that shadows or wicks are not counted in this, only focus on the body.

For this pattern to form, there are two basic conditions that must be met. First, the trend must already be established, whether it’s a bullish or bearish trend. Second, there must be 2 candlesticks with a specific formation that I will explain later.

Now let’s look at the bearish engulfing pattern, which occurs during an ongoing bullish trend. Here, a small green-bodied candle appears, followed by a red candle with a larger body that covers the green candle. This condition can be a signal that bullish momentum is starting to weaken.

Conversely, the bullish engulfing forms in a bearish trend. First, there is a small red-bodied candle, followed by a larger green candle that fully covers the red one. This indicates a potential reversal from bearish to bullish.

For a more specific bullish engulfing, there are several criteria that need to be met. The green candlestick body must be longer than the previous red candle’s body. The high of the green candle must also be higher than the high of the red candle. And ideally, the close of the green candle should be higher than the high of the red candle, although this is not mandatory.

Meanwhile, for bearish engulfing, it’s the opposite. The red candle’s body must be longer than the previous green candle’s body. The low of the red candle must be lower than the low of the green candle. And it’s preferable that the close of the red candle is lower than the low of the green candle, but this is optional.

So, in essence, this engulfing pattern is powerful because it indicates a shift in market momentum. But remember, don’t rely on just one pattern. Combine it with support and resistance, volume, and other indicators for stronger confirmation.