Bearish Engulfing Pattern Explained
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Bearish Engulfing Pattern Explained: My Complete Floor Method With Handmade Drawings - Entry, Stop Loss, Target
By AMERIMONDE TRADING - Founder from Gonzales, Louisiana | Updated: May 2026 | 20 min read | 2100+ Words | Personal Floor Journal With HD Photos
If you see this pattern at resistance, stop buying. Sellers just took control and trapped buyers. Welcome to AMERIMONDE TRADING - personal journal from Gonzales, Louisiana.
I am not a teacher who copies Babypips. I am a trader from Gonzales who learned bearish engulfing by laying 2 ropes on my floor from Home Depot. One small green rope 50% and one big fat red rope 100% that eats it completely. I took HD photo with flash, drew it on grid paper with red and green markers, and wrote SELLERS ARE WINNING and BUYERS TRAPPED on top. After I lost $120 buying at top of EURUSD, this pattern saved my account and gave me first $400 week.
This guide is for education only. No financial advice. I will show you my complete floor method with ENTER, STOP LOSS with 15 pips buffer, TARGET 2X, and how I use it with Universal Model 1D Bias, 4H Direction, 30M Confirmation.
What Is Bearish Engulfing Pattern? My Floor Definition
Bearish engulfing is 2-candle reversal pattern that happens at premium resistance zone. First candle small bullish green rope, second candle big bearish red rope that fully engulfs first candle body and close below its open. On my floor I lay small green rope first, then I lay big fat red rope on top that covers it completely from open to close. Red eats green. In my notebook I draw double checkmark ✅✅ for valid engulfing.
Anatomy on my floor I teach 10K Eagles on TikTok:
- Candle 1: Small 50% green rope, open at 2345, close at 2352, small body 7 pips, maybe small wicks. Buyers tried but weak, no power. I draw with pencil thin line.
- Candle 2: Big 100% red rope, fat, open at 2355 above previous close to trap buyers, high at 2360 sweep, close at 2330 below previous open. Body is 25 pips bigger than first candle, engulfs fully. No big lower wick, maybe small. I draw fat red with double marker and write ENGULFING with red marker and BUYERS TRAPPED.
Psychology behind: Day 1 buyers in control small, market makes higher high small. Day 2 sellers come aggressive at resistance, they open price higher to trap breakout buyers who buy the sweep, then they push price down hard all day and close below Day 1 open. All buyers from Day 1 and breakout buyers from Day 2 morning are now trapped in loss, they must sell to exit, that selling pushes price lower. This is manipulation I saw on my floor when I pushed black rope above resistance to 2360 then pulled red rope down hard to 2330. My cousin watched and said this looks like trap.
Where I Trade Bearish Engulfing - Only At Premium Resistance
I only trade bearish engulfing at premium resistance zone, not in middle of chart, not in downtrend. If you trade it in middle, you will lose 70% like I did first month and blow account. My rule taped on wall: No resistance, no engulfing trade.
My resistance zones on floor: I use black rope horizontal as ceiling. Mark 3 touches minimum on 4H or Daily. When price comes third time to same black rope ceiling at 2350 or 1.0850 and makes bearish engulfing with sweep, this is A+ setup for me.
What I check before I trade engulfing - 5 checks:
- Check 1 - Daily Bias: Is Daily bias bearish below Weekly Open? If Daily bias bearish, engulfing at resistance is with trend, better win rate. If Daily bias bullish, I reduce size 50% or skip. I check Daily close at 5pm EST.
- Check 2 - Liquidity sweep: Did price sweep above resistance with long wick thin black string before engulfing? If yes, extra strength, banks hunted stops above.
- Check 3 - Fat body: Is second candle 100% fat red rope with no big lower wick? If second candle has long lower wick below, it's 50% rejection, not 100% engulfing, wait for next candle.
- Check 4 - Volume: On TradingView volume should be 2x first candle volume. More volume = more sellers aggressive.
- Check 5 - Location: Is it at premium? Top 25% of weekly range? If yes, premium sell zone.
Valid vs Invalid Bearish Engulfing - My Floor Checklist
VALID ✅ I trade - Double Checkmark: Small green body first 5-10 pips, big red body second 20-30 pips that fully covers first body open to close, second candle closes below first open, at Daily or 4H resistance, second candle 100% fat red rope, no major lower wick, volume 2x, sweep above resistance before.
INVALID ❌ I skip - Red X: Second candle small not bigger than first, second candle does not engulf fully, pattern in middle of range no resistance, second candle has long lower wick 50% of body, first candle is big not small, no sweep, volume low, against Daily bias strong bullish without buffer.
Example invalid I lost: EURUSD middle of range 1.0700 no resistance, small red engulfing, I sold and price went up 50 pips and hit stop. I wrote in journal: Middle engulfing is trap, only trade at ceiling.
My Exact Trading Plan - ENTER, STOP LOSS, TARGET With 15 Pips Buffer
Example 1 from my notebook April 18, 2026 - Gold XAUUSD - My favorite:
Gold resistance at 2350 Daily. Daily bias bearish below Weekly Open 2365. 4H direction bearish. Day 1 on 4H: Small green rope 2345 to 2352 small body 7 pips. Day 2: Open at 2355 sweep above resistance to 2360 long thin black string, then big red rope close at 2330 engulfing Day 1 fully 25 pips body. I took photo on floor with flash, drew grid with markers, wrote BUYERS TRAPPED at top.
My plan I executed:
- ENTER: At close of second red engulfing rope 2332
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