A Bearish Engulfing pattern is formed when a green (bullish) candlestick is overshadowed or devoured in size by a red (bearish) candlestick. For a pattern to classify as a Bearish Engulfing pattern, the beginning price of the bearish candlestick must be equal to or greater than the closing price of the bullish candlestick.
The finishing price of the bearish candlestick is lower than the beginning price of the bullish candlestick from the previous day. As a result, the true body of the bearish candlestick must encompass the actual body of the bullish candlestick. The greater the difference between the two, the more severe the market indication created by the Bearish Engulfing Pattern.