Sunday, 3 August 2014

Bearish Candlestick Patterns

Belt Hold Line Bearish


A bearish belt-hold is a long black candlestick that opens on, or near, its high and closes well off its open. Also referred to as a black opening shaven head.

Hanging Man

A top candlestick reversal pattern that requires confirmation. The hanging man and the hammer are both the same type of candlestick pattern (i.e., a small real body [white or black], with little or no upper shadow, at the top of the session's range and a very long lower shadow). But when this line appears dur­ing an uptrend, it becomes a bearish hanging man. It signals the market has become vulnerable, but there should be bear­ish confirmation the next session with an open, and better is a close, under the hanging man's real body. In principle, the hanging man's lower shadow should be two or three times the height of the real body.

Shooting Star

A bearish candlestick pattern with a long upper shadow, lit­tle or no lower shadow, and a small real body near the lows of the session that arises after an uptrend.

Bearish Engulfing

A bearish engulfing candlestick pattern occurs when selling pressure overwhelms buying force as reflected by a long black real body engulfing a small white real body in an uptrend.

Counterattack Lines Bearish

Following a white candlestick in an uptrend the market sharply higher on the opening and then closes unchanged from the prior session’s close. 

Dark Cloud Cover

A bearish reversal signal. In an uptrend a long white candlestick is followed by a black candlestick that opens above the prior white candlestick's high (or close) and then closes well into the white candlestick's real body—preferably more than halfway. The bullish counterpart of the dark-cloud cover candlestick pattern is the piercing pattern.

Falling Window

The same as a Western gap. Windows are continuation candlestick patterns. If a window opens in a sell­off, it is a falling window. This is a bearish signal. The falling window is resistance.

Gapping Play Falling

Low-price gapping play.  After a sharp price decline, the market consolidates via a series of small real bodies near the recent lows. If prices gap under this con­solidation, it is a sell signal in candlestick trading.

Harami Bearish

A two-candlestick charting pattern in which a small real body holds within the prior session’s unusually large white real body. The color of the second real body can be white or black. 

Harami Cross Bearish


A two-candlestick charting pattern in which a doji real body holds within the prior session’s unusually large white real body. 

Separating Line Bearish

When the market opens at the same opening as the previous session’s white candle and then closes lower as a black candle. 

Side by Side Lines Bearish

Two consecutive white candlesticks that have the same open and whose real bodies are about the same size. In a downtrend, on Japanese candlestick charts these side-by-side white lines are still considered bearish (in spite of their white candles since they come after a falling gap).

Tasuki Gap Bearish

A bearish gapping tasuki is when the market gaps down with a black candlestick followed by a white candlestick. The last two candlesticks of the tasuki should be about the same size. 

Tweezer Top

When the same highs are tested on back-to-back sessions. 

Abandoned Baby Top

A very rare Japanese candlestick top or bottom reversal signal. It is comprised of a doji star that gaps away (including shadows) from the prior and following sessions' candlesticks. This is the same as a Western island top or bottom in which the island session is also a doji.

Dumpling Top

A candlestick charting pattern that is similar to the Western rounding top. A window to the downside is needed to confirm this as a top. Its bullish opposite is the frypan bottom.

Falling Three

The falling three methods is a bearish continuation pattern. It is ideally comprised of five lines. A long black real body is followed by three small, usually white, real bodies that hold within the first session's high–low range. Then a black candlestick closes at a new low for the move.

Three Buddha Top

A candlestick charting three Buddha top is the same as the Western head and shoulders top. In Japanese candlestick terms, the three Buddha top is a three mountain top in which the central moun­tain is the tallest. 

Three Crows

Three relatively long consecutive black candles that close near or on their lows. It is a top candlestick reversal pattern at a high-price level or after an extended rally.

Tower Top

Comprised of one or more tall white candles followed by congestion and then one or more long black candlesticks. 


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