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Wednesday, 21 September 2011

Bearish Engufing - Lets Learn - Kedar K Murdeshwar

21st Sept,2011

Bearish Engulfing:This is a Bearish pattern occurring in an uptrend.A green candle is completely engulfed by a Big red candle.The logic behind this formation is simple.After a bearish day,the next day the market opens higher but cannot sustain the rally and close below yesterdays low.

This pattern must be formed after a huge upward rally.the formation of this pattern in a flat market loses its charm.One can see it as a Mirror Image of Bullish Harami.

In the given below daily chart of SBI a Bearish Engulfing can be seen and also the downfall after that.



For more Information mail me on kd_analyst@rediffmail.com

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