Candlesticks Formations - Bearish Reversal Patterns
If Candlesticks are trending up and these next candlestick formations come in then a possble trend reversal may take place and the day trader prepares to exit their Long positions or enter and go Short.
HIGH RELIABILITY BEARISH CANDLESTICK REVERSAL PATTERNS:
Dark Cloud Cover, Kicking, Upside Gap Two Crows, Abandoned Baby, Evening Star Evening Doji Star, 3 Black Crows, 3 Inside Down, 3 Outside Down, Upside Gap Two Crows . Three Green Soldiers
Dark Cloud Cover- Candlesticks Reversal Pattern
When a Dark Cloud Cover formation occurs a dark sign has come to the upward trend demonstrating an unwillingness for buyers to continue buying.
****** HIGH BEARISH REVERSAL PATTERN ******
 3 Black Crows - Candlesticks Reversal Pattern
Three Black Crows formation is like the reverse of Three Martching Soldiers.
****** HIGH BEARISH REVERSAL PATTERN ******
Abandonded Baby Candlesticks Reversal Pattern
An abandonded baby is a bullish reversal sign named bacause it is untouched by other candlesticks.
****** HIGH BEARISH REVERSAL PATTERN ******
Evening Star Candlesticks Reversal Pattern
Evening star patterns are more reliable trend reversals than shooting stars because they offer confirmation of the reversal.
******* HIGH BEARISH REVERSAL PATTERN ******
 Evening Star Doji Candlesticks Reversal Pattern
Evening star patterns are more reliable trend reversals than shooting stars because they offer confirmation of the reversal.
****** HIGH BEARISH REVERSAL PATTERN ******
Upside Gap 2 Crows Candlesticks Reversal Pattern
Evening star patterns are more reliable trend reversals than shooting stars because they offer confirmation of the reversal.
****** HIGH BEARISH REVERSAL PATTERN ******
 3 Outside Down Candlesticks Reversal Pattern
Evening star patterns are more reliable trend reversals than shooting stars because they offer confirmation of the reversal.
****** HIGH BEARISH REVERSAL PATTERN ******
 3 Inside Down Candlesticks Reversal Pattern
Evening star patterns are more reliable trend reversals than shooting stars because they offer confirmation of the reversal.
****** HIGH BEARISH REVERSAL PATTERN ******
Shooting Star Candlesticks Reversal Pattern
A Shooting star pattern is shown by an upward trend followed by a gap and a large shadow above the real body of the following candlestick.
****** LOW BEARISH REVERSAL PATTERN ******
 Harami
A Harami Candlestick formation can be bullish or bearish. When a Trend is moving in a particular direction a small opposing candlestick occurs within the previous trend candlestick.
****** LOW BEARISH REVERSAL PATTERN ******
Trading Psychology
1. Each candlestick pattern shows an indication of possible trend reversal. Learn to recognize these candlestick patterns and formations so that you don't get caught out or miss out when day trading.
2. Long green candlesticks indicate that the Bulls are in control and buyers are far greater than sellers.
3. Long Red candlesticks indicate that the Bears are in control and sellers are far greater than buyers.
4. Small candlesticks indicate that neither Bulls or bears are in control. There is not much buying or selling.
5. A long lower shadow indicates that the Bears (sellers) were greater but the bears (buyers ) came back to overcome the selling pressure.
6. A long upper shadow indicates that the Bulls (buyers) were greater but the bears (sellers) made an impressive comeback.
7. Long upper and lower shadows on the same candlestick indicates that both Bears and Bulls had control but they were even in the end.
|
