The bearish inverted hammer has a typically bearish appearance, but it can have multiple predictions for the future depending on what precedes and follows this candlestick pattern. The inverted hammer occurs during a downtrend. There is a long string of black candles, and then suddenly a white candle appears. The body is very short and has a sizeable upper wick. Prices have started at a low point, but made up for it.

The bearish harami candlestick pattern is one that may or may not be significant. Wise traders take note of it, but wait for acting. The first day has a long white candlestick, which is a continuation of the bullish trend that is happening at the moment. The second, however, holds a surprise. The day opens below the first day’s closing and continues downward, closing with a black candlestick. However, it still closes above the first day’s opening, which makes it [...]

The bearish meeting lines candlestick pattern begins with a bullish candlestick during a distinctly bullish trend. There is a long white candlestick on the first day of the pattern. On the second day, the market opens high, but loses ground throughout the day. This is shown by the long black candlestick. Both days close at or near the same point, meeting at the middle—hence the word ‘meeting’ in the name. Both days have long candlesticks, although the second day is [...]

The bearish engulfing candlestick pattern is a crucial one to recognize and understand because it is one of the most direct signals of a top reversal. This pattern begins during a bullish market. The first day looks like a continuation of this uptrend, with a small to medium sized white candle. The second day seems to confirm this, at least at its opening, because it begins with a healthy gap up. However, everything goes south from there. The second day [...]

Many doji patterns suggest that a turnaround is occurring, and the bearish doji star candlestick pattern is no exception. This pattern generally occurs during an uptrend. The first day appears to be a continuation of that trend, with a tall white candlestick with short wicks or none at all. However, the second day brings a doji that opens above the previous day’s close, wavers throughout the day, then closes at its opening point. The wicks of the doji are [...]

The bearish neck lines candlestick pattern is a two stick pattern that occurs during a downtrend. Basically, the first day of the pattern there will be a black candlestick with a long body. On the second day, there will be a white candlestick that opens below the previous day’s low but closes at or near the first day’s low. This white candlestick must usually be very small to meet these criteria. Depending on where the second day closes in relation [...]

The bearish separating lines candlestick pattern is easy to distinguish once you know its characteristics. First, there should be a marked downward trend in prices. The first day of this pattern, you will see a white candlestick. The second day will open at or near the first day’s opening price, but the candlestick will have a black body with no upper shadow. Many people will recognize this as the black opening marubozu candlestick.

There are a few clues that you are dealing with the bearish thrusting lines pattern. First, the general trend of the market will be downward. One the first day of this pattern, the price will continue to drop, causing a black candlestick. On the second day, however, you will see a rally. The result will be a white candlestick that opens below the previous day’s low but ends somewhere around the first day’s midpoint. This is called ‘closing into the [...]

The dark cloud cover candlestick pattern is an important one to identify, because seeing this pattern can save you a lot of money. It all begins in an uptrending market with a steady stair-step procession of white candles. The first day of the dark cloud cover pattern will be one of these long white candles. The second day will start out with a gap up from this white candle, but it begins to drop. It continues the downward descent throughout [...]

The bearish piercing line candlestick pattern is basically the opposite of the dark cloud cover candlestick pattern. It takes place after a long downward trend in price. The first candle of this double candle pattern has a black body and can have wicks at either end. The candle for the second day is a white bodied candle that begins low, either at or below the first day’s low finish. However, it rallies and ends up increasing in price to finish [...]