September 10, 2020

Bearish Candlestick Patterns

Bearish Candlestick Patterns

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Bearish candlestick patterns on a chart visually show selling pressure. These patterns can show the possibility of a price reversal during an uptrend or the continuation of a downtrend already in place. There can be single bearish candles or bearish candlestick patterns containing multiple candles in row.

Here are some of the most popular bearish candlestick patterns:

  • Hanging Man
  • Shooting Star
  • Gravestone Doji
  • Bearish Spinning Top
  • Bearish Kicker
  • Evening Star
  • Bearish Engulfing
  • Bearish Harami
  • Dark Cloud Cover
  • Tweezer Top
  • Bearish Abandoned Baby
  • Three Black Crows
  • Evening Doji Star
  • Evening Star

Bearish Candlestick Patterns

Image courtesy of  JB Marwood  and his Candlestick Analysis For Professional Traders

Bearish candlestick patterns visually show the failure of buyers to take a price higher and sellers take control of a chart for the timeframe of the price action. These are bearish signals that need confirmation with a down swing in price after the pattern forms. 

The meaning and value of bearish candlesticks must be considered taking into the context of a chart pattern and their confluence with other signals. A bearish candlestick pattern that happens when a chart is overbought could signal a reversal of an uptrend. Bearish candles that happen late in a downtrend after a long term drop in price after a chart is already oversold can have a lower probability of success. 

Bearish candlestick patterns that have a confluence with other systematic short selling signals increase the odds of trade success.