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.

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.

What do the names of candlestick patterns mean?

In case you were wondering, the names of candlestick patterns usually describe a visual representation to something in real life. The Japanese were fond of naming them that way. The shooting star is no exception. When it occurs, it will be at the height of a current uptrend — typically an extended trend.

What is a three-Candlestick bearish reversal pattern?

BEARISH UPSIDE GAP TWO CROWS: This is a three-candlestick bearish reversal pattern. The gap between the black body of the second day and the white body of the first day represents the upside gap. The second and third black days represent the two black crows. more...