Bearish Engulfing

This model represents a reversal signal of a bullish trend, which represents the control of sellers in the market, and the beginning of a new direction, as this model features liquidate long positions of power loss sudden upward momentum.

The cover is a bearish pattern which consists of two Japanese bollards which refers to the reflection of the bullish trend. Bearish cover consists of a bullish candle, followed by a candle falling. Usually the opening of the bearish candle above the previous candle be shut down (ie the gap to the top), and close the center without previous candle.

As with other Japanese candles models, the currency traders must look for confirmation before entering into the trading process. But nevertheless, this model is considered one of the most powerful bearish signals for many “risk traders”