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)
USOTCBB 114725163.1670.8311.182.428.76
USOTC PINK 104027192451369.4562.478.361.906.46
JapanSAPPORO 2010850.0080.005.900.305.60
USWARRANTS 157956260.5165.266.070.775.31
CanadaCSE 103814778.6458.029.704.495.21
Saudi ArabiaTADAWUL 25721777119069.0966.974.360.653.71
ChinaSZSE 1644610717676965.1663.174.701.023.68
Hong KongHKEX 1699911713701568.9059.894.731.133.60
ChinaSSE 103566626407663.9861.524.390.933.46
Greece ATHENS 69644926564.5159.024.511.083.43
PortugalLISBON 35925715971.5961.874.320.923.40
KuwaitKSE 47528814860.6351.394.721.373.35
NorwayOSE 2206145186466.8258.624.391.103.29
USAMEX 39032564156765.6961.124.401.123.28
UAEUAE 51935222567.8263.924.100.923.18
South KoreaKOSDAQ 1897013545893271.5165.844.140.973.17
EgyptEGX 1441103163271.5561.304.321.183.14
UKLSE 1912012572784365.8562.303.720.703.02
USNASDAQ 31744215701347268.0162.403.910.913.01
TaiwanGTSM 95916727438570.1465.193.620.712.92
IndiaBSE 31996229191408771.6361.464.251.362.89
QatarQE 37826117869.0568.203.480.592.89
OmanMSM 93603564.5258.333.680.802.88
IndiaNSE 23221167911053872.3162.763.901.122.78
RussiaMICEX 1977133982667.7361.693.540.772.77
IndonesiaIDX 35382425138768.5457.203.580.922.66
CanadaTSX-V 2065135869466.0550.884.992.362.63
ArgentinaBUE 69747430068.0163.293.621.002.62
BrazilBOVESPA 38352540158066.4761.993.430.852.58
SpainIBEX 1786120575167.4762.323.310.772.54
The World 47051631622518908867.2459.763.360.902.46
IsraelTASE 33332425150772.7662.143.230.812.42
South KoreaKRX 1526410343658067.8363.553.230.842.39
TaiwanTWSE 1482610169607568.5959.742.830.642.19
AustraliaASX 93165994322664.3453.823.201.152.06
SwedenSTOCKHOLM 69874526258665.0456.912.960.912.05
ItalyBORSA 87925947344867.6457.982.650.681.97
FrancePARIS 78505295319567.4560.342.690.741.96
CanadaTSX 151019746542564.5455.662.790.851.93
TurkeyBIST 68294543247166.5354.392.730.931.80
SingaporeSGX 3162199297463.0048.902.730.981.75
MalaysiaBURSA 54013425171963.4150.192.821.081.74
USNYSE 41919280051623866.8157.982.300.631.67
Austria WIENERBORSE 47830818064.4458.442.320.691.63
BelgiumBRUSSELS 141789450363.0956.262.250.631.62
JapanNAGOYA 36021110658.6150.242.430.821.62
DenmarkCOPENHAGEN 136089151965.5158.252.350.771.59
JapanTOKYO 41781267661461564.0854.592.530.971.56
MexicoBMV 1924131578068.3559.322.290.751.55
JordanASE 36724211965.9449.172.731.291.44
GermanyXETRA 115527679426266.4755.502.150.721.43
NetherlandsAMSTERDAM 2398152486763.5556.891.860.561.31
Austria WIENERBORSE 1921236964.0656.101.430.201.23
USAMEX 39128417372.6360.921.230.151.07
JapanFUKUOKA 82361843.9050.001.720.671.06
TurkeyBIST 2111398565.8861.151.340.311.03
SwitzerlandSIX 40542533131762.4851.991.590.630.96
FOREXFOREX 28619411767.8360.310.780.200.58
USPREFERRED 38662331109460.2946.930.920.360.56
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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