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Tokan Corner has spotted Engulfing Bearish Candlestick  On DJIA Daily Chart

Be Alert Buyer !!!!

Engulfing Bearish

Timeframe: Daily

Reliability: Moderate

A reversal pattern.

Occurring during an uptrend, this pattern characterized by a large black real body, which engulfs a white real body (it doesn’t need to engulf the shadows). This signifies that the uptrend has been hurt and the bears may be gaining strength. The Engulfing indicator is also the first two candles of the Three Outside patterns. It is a major reversal signal. Factors that are increasing this signal’s reliability:

1) The first candlestick has a very small real body and the second candlestick a very large real body.

2) The pattern appears after a protracted or very fast move.

3) Heavy volume on the second black candlestick.

4) The second candlestick engulfs more than one real body.

Investopedia explains Bearish Engulfing Pattern
As implied by its name, a bearish engulfing pattern may provide an indication of a future bearish trend. This type of pattern usually accompanies an uptrend in a security, possibly signaling a peak or slowdown in its advancement. However, whenever a trader analyzes any candlestick pattern, it's important for him or her, before making any decisions, to consider the prices of the days that precede and follow the formation of the pattern.

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