A bearish candlestick pattern usually forms after an uptrend and marks a resistance point. Strong pessimism about market prices often causes traders to close their long positions and open their short positions to take advantage of price declines.
Hanging Man The
Hanging Man is the equivalent of a bearish hammer. The shape is the same, but it forms at the end of an uptrend.
This shows a significant sell-off during the day, but buyers were able to push the price back. A large sell is often taken as an indication that the bulls are losing control of the market.
Dark cloud cover
A dark cloudy candlestick pattern indicates a bearish reversal. It’s a black cloud that surpasses the optimism of the previous day. This he consists of two candlesticks. The red candlestick opens above the previous green body and closes below its midpoint.
shows the bears have hijacked the session and the price is plummeting. If the candle wick is short, it suggests that the downtrend was very important.
Three black crows
The three black crow candlestick pattern consists of three consecutive long red candles with short or non-existent wicks. Each session starts at a similar price to the previous day, but the selling pressure pushes the price lower and lower with each close.
Traders interpret this pattern as the start of a bearish downtrend as sellers outperformed buyers for three consecutive days.
Evening star
Evening Stars are three candlestick patterns that correspond to a bullish Morning Star. This is a short candle sandwiched between a long green candlestick and a large red candlestick.
indicates an uptrend reversal and is especially strong when the third candle wipes out the gains of the first candle.
Bearish engulfing
A bearish entrainment pattern occurs at the end of an uptrend. The first candle wraps a small green body with the next long red candle.
Indicates a peak or slowdown in price action, a sign of impending market downturn. The further down the second candlestick is, the more likely the trend is to become significant.
Shooting star
The shooting star has the same shape as the inverted hammer, but it has a smaller lower body and a longer upper core.
The market typically rises at the opening and recovers to daily highs before closing just above the closing price like a shooting star.
