Bearish Engulfing formation:
A Bearish Engulfing pattern mostly occurs at the bottom of an uptrend or at the consolidation Resistance levels. Formed by a small, green candlestick and is followed by a big red candlestick that is flooded by the body of the last candlestick.
The Bearish Engulfing pattern indicates a change in the Bullish uptrend. A big, red body completely shadowing the highs and closing of the past candlestick. sellers step in after the open and take control of the market. In general, the rule is: The bigger the engulfing, the more the market will go down. A big volume during the period the red candle is getting its form is an important reversal sign.