A bearish engulfing pattern is a sort of chart pattern that may be spotted on technical charts and signals potential price drops. The pattern consists of a smaller up candlestick that can be white or green, followed by a bigger down candlestick that can be black or red and "engulfs" the earlier up candle. The pattern may be noteworthy because it shows that sellers have won over buyers and are driving the price down (candle with wick pointing down) more aggressively than buyers were able to drive it up (candle with wick pointing up).

A bearish engulfing pattern is a significant candlestick chart pattern used in technical analysis to signal a potential trend reversal in financial markets, particularly in stocks, forex, and commodities. This pattern occurs when a small bullish candle is followed by a larger bearish candle that completely engulfs or "engulfs" the previous candle's range.

The bearish engulfing pattern suggests a shift in market sentiment from bullish to bearish. It reflects increased selling pressure, as the larger bearish candle overwhelms the preceding bullish one. Traders often interpret this pattern as a sign that sellers have gained control, potentially leading to a downtrend.

While the bearish engulfing pattern can be a powerful indicator, traders typically consider it more reliable when it occurs after an uptrend and is accompanied by other confirming signals or technical analysis tools. As with any technical analysis, it's essential to use the bearish engulfing pattern in conjunction with other factors for more accurate predictions.