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 1-candlestick pattern?

A 1-candlestick pattern. It can signal an end of the bullish trend, a top or a resistance level. The candle has a long lower shadow, which should be at least twice the length of the real body. The candle may be any color, though if it’s bearish, the signal is stronger. The pattern requires further bearish confirmation.