Replies to post #15885 on Grapefruit USA Inc (GPFT)

[IMGG4TP]

Madtig...your turn to hit the books!

A bearish engulfing pattern is a TWO candlestick pattern. You know the parameters of the design.

If it occurs at the top of a uptrend, or the top of a multiday bounce in a downtrend, it becomes a reversal pattern.

If, on the other hand, it occurs during a downtrend, or at the top of a multiday bounce in a downtrend, it becomes a CONTINUATION pattern.

So, to summarize, your right. A bearish engulfung reversal pattern only occurs at the top of an uptrend, but, alas, I never said that it was a bearish engulfing reversal.

Thanks for your reply.