What are bearish candlestick patterns?

Typically, we like to use bearish candlestick patterns to sell stocks. The reason for this is that they give us a very definable area of risk with a set reward. For example, you will see in a moment the 8 bearish candlestick patterns that we describe below.

How do you know if a candle is bullish?

The candle may be any color, though if it’s bearish, the signal is stronger. The pattern requires further bearish confirmation. The sell signal is confirmed when a bearish candlestick closes below the open of the candlestick on the left side of this pattern. A 2-candle pattern. The first candle is bullish and has a long body.

What are reversal candlestick patterns?

Below you can find the schemes and explanations of the most common reversal candlestick patterns. Bullish reversal patterns appear at the end of a downtrend and signal the price reversal to the upside. A 1-candle pattern. It can signal an end of the bearish trend, a bottom or a support level.

What is a bearish engulfing pattern?

A bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The pattern consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that eclipses or "engulfs" the smaller up candle.