This is also a common pattern in price time chart and strongest bearish reversal pattern. The success rate of this pattern formation is more than 80 %( i.e. in more than 80% cases the pattern use to give break out). Once the pattern is identified the next job is to find out the break out point, throwaway price, entry and exit point, pattern failure price point and target.
In all candles stick reversal patterns the price target is unlimited until and unless any contradictory reversal pattern is not formed in the price time chart in the breakout direction.
Example: I have identified the formation of bearish engulfing pattern in SBI on 06th June 2007. Find out the break out point, target, pattern failure point, entry and exit point? Below the price time chart and the OHLC data is given for reference.
