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Definition

The market must be in clearly defined uptrend. The first candle is bullish. The second candle is bearish. The bearish candle engulfs the previous candle’s body. The size of the candle being engulfed doesn’t matter. Ignore the wicks. An even stronger signal occurs when the bearish candle engulfs the bodies of two or three previous candles. Indicates a bearish trend may be beginning.