BEARISH CANDLESTICK PATTERN EXPLAINED
- In this article, we will discuss about the Bearish Candlestick Patterns.
- You can increase your knowledge about technical analysis by reading this article.
• There are three types of Candlestick Patterns :
- [A] Bullish Candlestick Pattern
- [B] Bearish Candlestick Pattern
- [C] Continuation Candlestick Pattern
BEARISH CANDLESTICK PATTERNS
1) Shooting Star
- Shooting Star candle has a long upper wick (double of the real body) and small body at the bottom with a very small or no upper wick.
- This candle indicates the sellers are stronger than the buyers.
- Shooting Star candle work well , if it formed at resistance level after upside rally.
- The shooting Star candle is a signal of bearish reversal.
2) Gravestone Doji
- Gravestone Doji is similar to Shooting Star Candle , but the difference is that Gravestone Doji has no any body.
- Open and Close is almost same.
- This candle indicates the sellers are very strong compar to the buyers.
- Gravestone Doji is most bearish candlestick.
- Gravestone Doji work similarly to Shooting Star Candle.
3) Red (Black) Marubozu
- Red Marubozu has a long red body with no upper or lower wick.
- Open,High is almost the same and Close,Low is almost the same.
- If this candle formed after a upside rally , Market has a high probability to turning downside.
- Very strong Bearish Signal.
4) Hanging Man
- The Hanging Man candle has a long lower wick and small body at the top, with very small or no upper wick.
- Hanging Man candle is the inverse of Shooting Star candle.
- If Hanging Man candle formed after a upside rally , it signal of bearish reversal.
5) Bearish Engulfing
- A Bearish Engulfing candlestick is the combination of two candles , that is formed after an uptrend, indicates a bearish reversal.
- In this candlestick , the second candle is bearish candle (red candle) , which engulfs the first bullish candle (green candle).
- It indicates sellers are strong.
6) Bearish Harami
- Bearish Harami candlestick is the combination of two candles , that is formed after an uptrend, indicates a bearish reversal.
- In this candlestick , the second candle is a small bearish candle that is located inside the first bullish candle.
- Bearish Harami candlestick also known as the Inside Candle.
7) Dark Cloud Cover
- Dark Cloud Cover candlestick is the combination of two candles , that is formed after an uptrend, indicates a bearish reversal.
- In this candlestick , the first candle is bullish (green) and second candle is bearish (red).
- The second candle (red) open gap up above the first candle (green) , but close below the 50% of real body of the first (green) candle. which indicates sellers are strong.
8) Tweezer Top
- A Tweezer Top candlestick is the combination of two candles , that is formed after an uptrend, indicates a bearish reversal.
- In this candlestick , the first candle is bullish (green) and the second candle is bearish (red).
- Both candles make almost the same high, which indicates sellers are strong.
9) The Evening Star
- The Evening Star candlestick is the combination of three candles , that is formed after an uptrend, indicates a bearish reversal.
- In this candlestick , the first candle is bullish (green), the second candle is a Doji (any colour) and the third candle is bearish(red).
- The body of the Doji candle should be completely out of the real bodies of the first and third candles.
10) Three Black (Red) Crows
- Three Black Crows candlestick is the combination of three candles , that is formed after an uptrend, indicates a bearish reversal.
- In this candlestick , all three candles are bearish(red) and do not have any wicks and are open within the real body of previous candle.
11) Three Inside Down
- Three Inside Down candlestick is the combination of three candles , that is formed after an uptrend, indicates a bearish reversal.
- In this candlestick , the first candle is bullish (green) and the second candle is small bearish (red) candle that is located inside the first bullish (green) candle and the third candle is a strong bearish candle.
- Similar to Bearish Harami.
12) Three Outside Down
- Three Outside Down candlestick is the combination of three candles , that is formed after an uptrend, indicates a bearish reversal.
- In this candlestick , the first candle is small bullish (green) and the second candle is bearish (red) , which engulfs the first candle and third candle is also bearish candle.
- Similar to Bearish Engulfing.
IMPORTANT
• All Bearish candlestick work well, if it formed at Resistance level after upside rally.
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