How to Trade The Japanese Candlesticks Bearish

 

 
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The Long Black Body

A long black candlestick at the top of a rally is a strong indication that the buyers are running out of steam and the bears are entering the market aggressively...

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The Hanging Man

The Hanging man is actually a Hammer at the top of a rally. It’s a bit dubious that the same candlestick pattern is both bullish and bearish...

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The Bearish Harami

The Dark Cloud Cover consists of two Japanese candlesticks. It forms at the top of a rally or near a resistance area. The first candle is a long...

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The Bearish Engulfing

The Bearish Engulfing reversal pattern consists of two Japanese candlesticks of opposing colors. It forms at the end of an uptrend or near a resistance area...

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The Dark Cloud Cover

The Dark Cloud Cover consists of two Japanese candlesticks. It forms at the top of a rally or near a resistance area. The first candle...

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The Shooting Star

The Shooting Star is nothing new but a variation of the Hammer. It is an inverted hammer to be more precise. So, a Shooting star at the top...

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The Tweezers Tops

Tweezers Top is a two-candlestick bearish reversal pattern during an uptrend or a rally. It signifies the end of the uptrend and the beginning...

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Three Black Crows

The following bearish reversal pattern we will discuss consists of three Japanese candlesticks. It forms at the top of a rally or near a resistance area...

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The Evening Star

This is a three-candlestick reversal pattern at the end of the uptrend or a rally. The first candle is a long white body in the direction of the trend “showing off"...

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The Dumpling Top

The Frypan Bottom is a bullish reversal candlestick pattern identified at the end of the downtrend. It is the equivalent of the Western bullish pattern...