What are bearish candlesticks and how do they work?

When a bearish candle forms the price of the stock goes down causing the closing price to be lower than the opening price. Bearish candlesticks patterns form over a period of time. As a result, these patterns give you insight into the future movement of a stock or market.

What is the bearish Harami candlestick pattern?

In contrast, the Bearish Harami candlestick pattern is a signal for a reversal from up to down. These two candlestick patterns are very good, highly accurate signal pairs. Traders always give an eye on them when they appear on the price chart.

What is the second Candlestick?

The second candlestick is a red (bearish) candle lying within the first one. On the Japanese candlestick price chart: It usually appears at the end of uptrends and predicts a future price decline. The pattern which has a larger amplitude will give a more accurate bearish signal.

What does a reversal candlestick mean?

Because the first candlestick has a large body, it implies that the bearish reversal pattern would be stronger if this body were black. This would indicate a sudden and sustained increase in selling pressure. The small candlestick afterwards indicates consolidation before continuation.