The chart showing Series 1 series.
To see the performance of the pattern in your stock exchange in the context of other stock markets please examine the table below. Find your stock market there and see how it ranks among the others. This will give you an idea about the pattern’s strength and reliability and help you in your selling decisions.
This pattern is characterized by a large black body engulfing a preceding smaller white body, which appears during an uptrend. The black body does not necessarily engulf the shadows of the white body but totally engulfs the body itself. This is an important top reversal signal.
Recognition Criteria
1. The market is characterized by a prevailing uptrend.
2. A white body is formed observed on the first day.
3. The black body that is formed on the second day completely engulfs the white body of the preceding day.
Pattern Requirements and Flexibility
The length of the first white candlestick is not important. It can even be a Doji. The second one, however, has to be a normal or long black candlestick. Either the body tops or the body bottoms of the two candlesticks may be at the same level, but in any case, the black body of the Bearish Engulfing Pattern should be longer than the previous white body.
Trader’s Behavior
While the market is characterized by a definite uptrend, lower volume of buying is observed with the occurrence of a white body on the first day. The next day, the market opens at new highs. It looks as if there’s going to be more bullish trading, however the uptrend loses momentum and the bears take the lead during the day. The selling pressure overcomes buying and finally the market closes below the open of the previous day. The uptrend is damaged.
Sell/Stop Loss Levels
The confirmation level is defined as the last close. Prices should cross below this level for confirmation.

The stop loss level is defined as the last high. Following the bearish signal, if prices go up instead of going down, and close or make two consecutive daily highs above the stop loss level, while no bullish pattern is detected, then the stop loss is triggered.
Pattern Performance in Stock Exchanges since 1/1/2014
Stock Exchange
Per Trade
Total Net%(Descending)
USOTC PINK 91396340398469.5462.698.461.916.55
USOTCBB 91543659.3466.678.693.075.61
JapanSAPPORO 2010850.0080.005.900.305.60
CanadaCSE 75603380.0055.0010.554.975.58
USWARRANTS 140855560.7164.715.450.814.64
Saudi ArabiaTADAWUL 22921564103968.2466.434.590.663.93
Hong KongHKEX 1533410555637368.9960.244.881.133.75
ChinaSZSE 148899663604664.9062.574.801.073.73
NorwayOSE 1952129877966.5060.024.841.123.72
Greece ATHENS 64942825966.1060.374.731.073.66
ChinaSSE 94396035368463.9461.044.460.963.50
PortugalLISBON 33224015172.2962.924.350.943.42
EgyptEGX 130193357271.7161.314.381.103.28
USAMEX 34622289140966.1261.564.361.123.24
South KoreaKOSDAQ 1702212165805771.6966.024.170.993.18
UKLSE 1703811271717866.1963.653.870.703.17
UAEUAE 47131619767.0962.344.080.933.15
USNASDAQ 28338191841203567.8762.583.990.903.09
IndiaBSE 28712204821271571.3462.084.411.383.04
TaiwanGTSM 86146064397370.4065.523.740.713.03
OmanMSM 86553363.9560.003.800.783.02
IndiaNSE 2063714887947172.1463.624.111.112.99
ArgentinaBUE 59039024966.9563.043.840.962.88
QatarQE 33722815067.6665.793.510.652.86
IndonesiaIDX 31772146123967.5557.743.620.912.71
CanadaTSX-V 1892122663765.0151.794.942.262.68
SpainIBEX 1574105967467.2863.643.400.752.65
BrazilBOVESPA 33802250141166.7862.523.510.872.64
KuwaitKSE 3902209956.4145.004.031.472.56
RussiaMICEX 1808120573666.6561.083.370.842.54
The World 42331128470817162267.3060.243.440.902.53
South KoreaKRX 137969404603568.1664.183.370.852.51
IsraelTASE 29312152134473.7662.163.240.782.45
TaiwanTWSE 133269122545368.4559.782.910.632.28
SwedenSTOCKHOLM 60193906228264.8958.423.060.912.15
ItalyBORSA 78025321312768.3058.682.760.682.08
FrancePARIS 70344790291968.1060.942.750.722.03
CanadaTSX 135608754487964.6255.682.830.832.00
MalaysiaBURSA 47433034156163.9751.453.011.031.98
AustraliaASX 84115408290264.3353.633.141.171.97
TurkeyBIST 60654033225066.5055.792.850.941.91
SingaporeSGX 2825180188363.7549.032.810.981.84
Austria WIENERBORSE 42528016765.8859.642.440.721.72
USNYSE 37922253041475066.7558.272.340.631.71
BelgiumBRUSSELS 128680244962.3655.992.290.621.67
DenmarkCOPENHAGEN 119379247566.3959.972.430.761.67
JordanASE 31821010566.0450.002.711.071.64
JapanTOKYO 37711242921333064.4254.872.560.981.58
GermanyXETRA 102956872388066.7556.462.240.711.53
MexicoBMV 1745118870668.0859.432.240.751.49
JapanNAGOYA 33419510258.3852.312.360.881.48
NetherlandsAMSTERDAM 2154141080965.4657.382.050.601.45
Austria WIENERBORSE 1851166462.7055.171.430.211.22
USAMEX 34024915773.2463.051.330.151.18
SwitzerlandSIX 36212301123463.5553.631.660.621.04
JapanFUKUOKA 79331741.7751.521.700.671.03
TurkeyBIST 1771146764.4158.771.280.261.02
USPREFERRED 36072201105861.0248.071.000.350.65
FOREXFOREX 24716510266.8061.820.830.210.62
Patterns Total: How many of this particular pattern has been detected in this period
Confirmed Total: How many of the detected patterns were confirmed and converted into signals
Profitable Signals: The number of the confirmed patterns that have given profitable trades
Confirmation %: The percentage of the confirmed patterns with respect to the total occurrences of this pattern
Profitable Signal %: The percentage of the successful confirmed patterns with respect to the total confirmed patterns
Per Trade Profit %: Total Profits / Total Trades
Per Trade Loss %: Total Losses / Total Trades
Per Trade Net%: (Total Profits–Total Losses) / Total Number of Trades
Samples: Live sample ticker symbols from stock exchanges with links to stock pages of the related© family websites
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