The bearish engulfing pattern is just the opposite of the bullish engulfing pattern.
Let's have a look at the properties.
First of all it is a two candle pattern. Then the market must be in an uptrend
this time. The first candle then must be green in line with the previous trend that is up and the second
candle must be red.
The real body of the second Candle must surround the real body of the first candle. And last one is
that the position of the shadows on either candles doesn't matter.
So if you got the logic of the bullish engulfing pattern, the bearish engulfing pattern will be very easy
for you.
Let's follow this example on dollar-swiss franc, 4-hour chart.
The trend is clearly up but at one point there's a bearish engulfing pattern that is a clear signal
that sellers are strong at that price and might have the power to change the trend.
Just a quick tip to increase the likelihood that the engulfing pattern will succeed. The engulfing pattern
becomes more significant if the first candle has a very small body
and the second candle has a very long real body.
This is because the first candle reflects a dissipation of the prior trend's force and the large second
real body shows an increase in force behind the new move.