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Learn one candlestick pattern every day.
A bearish engulfing pattern is a combination bearish reversal candlestick in the 12 Golden K, often seen as a signal that an uptrend is about to retrace or come to an end.
A bearish engulfing pattern has very high requirements for structure. The most perfect scenario is formed by two candlesticks of opposite colors, where the first must be a bullish candle and the second must be a bearish candle. The body of the second bearish candle must completely engulf the body of the first bullish candle, presenting a fully wrapped state.
The bearish engulfing pattern can also have deformed structures, as shown in the figure. However, the essence remains unchanged; the body of the final bearish candle must completely wrap the body of the preceding bullish candle.
Notice:
1. The appearance of a top at the end of an upward trend is likely a signal that the trend is about to correct or end.
2. If the bearish engulfing pattern does not appear at the very top of the trend, abandon the entry.
3. Be cautious when entering the market if the shadow line is too long.
4. Must be used in conjunction with key positions.
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