When is the Bearish Engulfing confirmed?

After a rise, a candle CLOSES below the low of the two candles within 3 candles.

When is the Bearish Engulfing invalid?

Price trades above the pattern's high before that close.

BearishReversalBeginner

A red body swallows the green body before it. Sellers take over in one candle.

Verdict: CautionBitcoin 4H: 276 trades, won 49%, avg trade +0.1% vs random day −0.2%. Backtest

Uptrend

Bearish Engulfing: textbook shape, step by step

Price is climbing. Buyers step in on every dip.

step 1/7

Direction	Short (sell)
Entry	After a rise, a candle CLOSES below the low of the two candles within 3 candles.
Cancelled if	Price trades above the pattern's high before that close.
Target	2x the pattern, projected from the breakout

3 common mistakes

Comparing the wicks: only the red body has to cover the green body.
Shorting the engulfing candle's close instead of waiting for a close below the pattern's low.
Taking it in a sideways range: it needs a rise before it to reverse.

same rules every time · equal size · no fees · method

Market	Trades	Won	Avg trade	Random day
Bitcoin · 4H · 2017-2026	276	49%	+0.11%	−0.22%
US large caps (50) · 1D · 2016-2026	1239	43%	−0.64%	−0.58%

Verdict: CautionBeat a random entry in some markets, not in others.

pattern +30%random −62%

Bitcoin 4H: pattern +30% vs random day −62% over 276 trades

pattern −787%random −723%

US large caps (50) 1D: pattern −787% vs random day −723% over 1239 trades

Breakout Nov 11, 2025, exit Nov 13, 2025 (target)+4.33%

Pattern lowUptrend99,261 · Nov 7, 2025Bearish engulfing105,500 · Nov 11, 2025Confirmed

Bitcoin 4H, real candles from Nov 7, 2025

Breakout May 2, 2019, exit May 13, 2019 (target)+4.09%

Pattern lowUptrend253.89 · Mar 18, 2019Bearish engulfing291.00 · May 1, 2019Confirmed

Adobe 1D, real candles from Mar 18, 2019

trapBreakout Nov 20, 2020, exit Nov 23, 2020 (stop)−6.47%

Pattern lowUptrend31.11 · Oct 29, 2020Bearish engulfing39.13 · Nov 18, 2020Confirmed

Exxon Mobil 1D, real candles from Oct 29, 2020