Bearish Candlestick pattern -A Complete Guide to use

Bearish Candlestick Pattern
Bearish Candlestick Pattern

Hello learners, welcome to our website.

Today we are going to know about the bearish candlestick pattern. At first, this question comes to mind. Why knowing bearish candlestick pattern is needed? I will clear it first when the market is falling, which is often because the stock market works in a zigzag pattern. If it goes up, then there is some correction. So in the falling market how will you earn?

Here is the concept that comes short selling. In short-selling investors sell the stocks when prices are high and buy the stock when prices are low. And that is how bearish candlestick pattern helps. If you know the candlestick pattern well then you will earn money even in the falling market. In this article, we are going to understand five candlestick patterns that will help you in the share market.

Also click here to learn the best six bullish candlestick pattern

1.Bearish Engulfing

Bearish Candlestick patterns

A bearish engulfing pattern is made up of two candles. The first candle has a small green candle that is engulfed by the next red candle.
It usually occurs at the upside or the peak. It indicates the bearish reversal and has high reliability.

2. Evening star

Evening Star, Bearish Candlestick patterns

The evening star is a three candlestick pattern, which is made up of a bullish candle, and the second candle can be small bullish or small bearish. And the third candle is bearish. Evening star pattern indicates a bearish reversal. It usually occurs at the uptrend.

3. Dark Cloud Cover

Dark Cloud Cover, Bearish Candlestick patterns

Dark Cloud Cover pattern indicates a bearish reversal. It is the opposite of the piercing line. The dark cloud cover pattern is made up of two candlestick patterns. The first candle is bullish, and the second candle opens up and closes below the midpoint of the previous bullish candle. Traders look for the confirmation to trade that is the next candle which shows the downtrend.

4.Three Black Crows

three black crows,Bearish Candlestick patterns

The three black crows pattern occurs at the uptrend and it indicates a bearish reversal. It has high reliability to reverse the trend. Hanging man pattern made up of three consecutive bearish candlestick patterns.

5.Hanging Man

hanging man

Hanging man pattern made up of one candle. It indicates a bearish reversal. It has the same shape as a hammer, has a small body, and a long wick at the end. But it occurs at the uptrend and it is bearish.

To know more about bearish candlestick pattern you can click to this link.,engulfs%22%20the%20smaller%20up%20candle.

Hope this article helps you in you investing, if you want to give any suggestion/feedback, please make sure to tell me in the comment section.

If you love reading, you can visit this website.

Discover latest Indian Blogs



Please enter your comment!
Please enter your name here