Bearish Engulfing Pattern | AUDUSD

The Bearish Engulfing pattern consists of two candles. First one is a small upward candle followed by large bearish candle. The bearish candle must absorbs completely the previous one formed during the uptrend. The bearish candle is not required to cover the shadows of bullish candle.

Requirements for validity:
1. Market in uptrend;
2. Small bullish candle;
3. Second one is large and bearish that compleately cover the bullishcandle.

Tips:
These are standard trading rules. There are many more specifics about order placement that I will reveal in the next posts!
1. Do not trade by candlestick analysis only!
2. Always do combine at least two or more analysis!
3. For example:
- trend analysis (always works);
- support & resistance analysis;
- Fibonacci.
4. Follow us for more tips and analysis!

Recommendations:
Confirmation in the form of a downward candle with a closing price lower than the previous one or a downward gap is recommended, to be sure that the trend is reversing!