Last Engulfing Top

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Figure 1.

Figure 1. Last Engulfing Top pattern.

Forecast: bearish reversal/bullish continuation
Trend prior to the pattern: uptrend
Opposite pattern: Last Engulfing Bottom
See also: Bullish Engulfing

Construction:

  • First candle
    • a candle in an uptrend
    • black body
  • Second candle
    • white body
    • candle’s body engulfs the prior candle’s body

 

The description of the Last Engulfing Top is precisely the same as of the Bullish Engulfing pattern except for the trend requirement. The Bullish Engulfing appears within a downtrend, whereas the Last Engulfing Top occurs within an uptrend.

It may be asked why this pattern may reverse an uptrend. After all, it is not difficult to find short black candles appearing within an uptrend. It is not an unusual situation because, during an uptrend, price often pauses before climbing higher.

Though when the Last Engulfing Top appears, it should not be ignored, especially when it is preceded by a Bullish Engulfing pattern. The ideal setup is where we deal with both patterns on the chart; first having a Bullish Engulfing (price rises), and after a while a Last Engulfing Top.

As the name implies, the Last Engulfing Top symbolizes an uptrend end. When such pattern emerges, the one should wait what happens on the following candles. If a black candle appears which closes significantly lower, then we can expect the trend reversal. If, however, we deal with a candle closing much higher, the uptrend is likely to be continued.

 

Figure 2.

Figure 2. The Last Engulfing Top may act either as a bearish reversal or bullish continuation pattern (see also Last Engulfing Bottom).
On the chart, a Black Candle appears at a very high trading volume, signalling that an uptrend may be over. The appearance of a Turn Down pattern and a Long Black Candle confirms that the bears are in control.

 

Figure 3.

Figure 3. A Last Engulfing Top is followed by a Rising Window formed at a high trading volume what confirms that the bulls control the stock. The Rising Window will act as a support area in the future.

 

Last Engulfing Top statistics

Below you can find some Last Engulfing Top pattern statistics calculated by CandleScanner software. To see more detailed statistics, for other markets and periodicity try our CandleScanner software. Prices start at only $10, and you can see more detailed statistics, for other markets and periodicity. Click here to find out more!

Pattern name: Last Engulfing Top
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/1995 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 2,236,421
Number of occurrences (Last Engulfing Top): 20,193
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (Last Engulfing Top): 3.16 %
Average frequency: 110.8
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
6 3,480 6,888 3,949 5,870
% of
Occurrences
0.03 % 17.20 % 34.11 % 19.56 % 29.10 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
13 3,280 5,549 3,609 7,742
% of
Occurrences
0.06 % 16.18 % 27.48 % 17.87 % 38.41 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
SPLS 54 93.2 24 44.45 % 31 59.26 %
ALTR 51 98.7 26 50.97 % 29 56.86 %
NBL 51 98.7 25 49.02 % 28 54.90 %
NTAP 55 89.7 20 36.37 % 30 54.55 %
AMZN 44 103.7 19 43.18 % 23 54.54 %
KR 46 109.4 19 41.31 % 25 54.35 %
JBHT 48 104.9 24 50.00 % 26 54.17 %
EA 47 107.1 24 51.06 % 25 53.20 %
PX 49 102.7 16 32.66 % 26 53.07 %
PXD 46 109.4 20 43.48 % 24 52.18 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
CNX 42 96.9 17 40.48 % 17 40.48 %
REGN 53 95.0 20 37.74 % 20 37.74 %
VRTX 50 100.6 17 34.00 % 17 34.00 %
ETFC 42 113.1 14 33.33 % 14 33.33 %
AIG 44 114.4 14 31.82 % 14 31.82 %
NVDA 51 81.1 16 31.37 % 16 31.37 %
BRCM 42 103.1 14 33.33 % 13 30.95 %
MSI 49 102.7 15 30.61 % 15 30.61 %
HP 52 96.8 15 28.85 % 15 28.85 %
EBAY 46 91.7 13 28.26 % 13 28.26 %
Pattern name: Last Engulfing Top
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/2010 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 614,034
Number of occurrences (Last Engulfing Top): 6,329
Number of occurrences (all candlestick patterns): 166,328
% of occurrences (Last Engulfing Top): 3.81 %
Average frequency: 97.0
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
6 928 2,830 1,272 1,293
% of
Occurrences
0.09 % 14.57 % 44.71 % 20.10 % 20.53 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
13 821 2,233 1,267 1,995
% of
Occurrences
0.21 % 12.76 % 35.28 % 20.02 % 31.73 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
DISCK 15 83.9 8 53.33 % 11 73.33 %
WFC 13 96.8 5 38.46 % 9 69.24 %
BBY 16 78.6 8 50.00 % 11 68.75 %
EXPE 12 104.8 6 50.01 % 8 66.67 %
GMCR 15 83.9 9 60.00 % 10 66.67 %
NEM 14 89.9 8 57.14 % 9 64.28 %
CF 13 96.8 7 53.86 % 8 61.55 %
RCL 13 96.8 6 46.16 % 8 61.55 %
CVC 17 74.0 8 47.07 % 10 58.83 %
CBG 17 74.0 9 52.95 % 10 58.83 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
INTU 14 89.9 7 50.00 % 7 50.00 %
BSX 12 104.8 5 41.67 % 5 41.67 %
DFS 12 104.8 5 41.67 % 5 41.67 %
CNX 13 96.8 5 38.46 % 5 38.46 %
TSO 19 66.2 7 36.84 % 7 36.84 %
AIG 17 74.0 6 35.29 % 6 35.29 %
KMX 17 74.0 6 35.29 % 6 35.29 %
AKAM 12 104.8 4 33.33 % 4 33.33 %
GIS 12 104.8 4 33.33 % 4 33.33 %
HCP 12 104.8 4 33.33 % 4 33.33 %

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