Bearish Engulfing Pattern for Binance Traders (Short Version):
When trading on Binance, a "Bearish Engulfing" pattern is a strong sign of a potential price drop.
Spot Resistance: First, identify a "resistance" level – a price where the crypto asset has struggled to go higher.
The Pattern:
You'll see a small green (bullish) candle.
Immediately followed by a larger red (bearish) candle that completely "swallows" or engulfs the previous green candle.
What it Means: This shows that sellers have overwhelmed buyers, indicating a strong likelihood of the price going down.
Action on Binance:
Consider selling existing long positions.
Could be a signal to open a short position (with caution and stop-loss).
It basically means the "bears" (sellers) have taken over the "bulls" (buyers).
Here's a quick visual reminder of the pattern: