This pattern appears at the end of the uptrend, including bullish candle number 1 and bearish candle number 2. The body of bearish candle number 2 has the size of overwhelming the body of candle number 1.

In this lesson, we can also review and review a lot about how to enter and close orders. With the Engufing Down pattern, we can execute a SELL order when the 3rd candle opens, and close the order when the 3rd candle closes.

If the market force is still strong, we can continue to execute SELL orders when candle 4 opens and close orders when candle 4 closes.