Best 5 Bearish reversal Candlestick Patterns ever - Every traders should know.

Best 5  Bearish reversal Candlestick Patterns ever - Every traders should know.

What is Bearish Reversal Candlestick Pattern?

Bearish reversal candlestick patterns signify that sellers are momentarily in control. However, this doesn’t mean you should sell immediately when you spot such a pattern because you must take the market conditions into consideration.

How do you confirm Bearish reversal Candlestick patterns?

A bearish reversal pattern should form at the end if an uptrend. If it does not form, then it acts just like a continuation pattern and you should wait until it forms before confirming it with other indicators. Volume and resistance are two important factors when looking for confirmation of a bearish reversal signal.

The best 5 Bearish reversal Candlestick Patterns are

• Shooting star 
• Bearish engulfing pattern 
• Dark cloud cover 
• Tweezer top 
• Evening star

These are the five bearish reversal candlestick patterns that we’ll be discussing:

Shooting Star

A shooting star is a (one-candle) bearish reversal pattern that forms after an advance in price. 

Here’s how to recognize it: 

• There is little or no lower shadow. 
• The price closes at the bottom quarter of the range. 
• The upper shadow is about two or three times the length of the body. 

And this is what a shooting star means: 

1. When the market opened, the buyers took control and pushed the price higher.
2. At the buying climax, huge selling pressure stepped in and pushed the price lower. 
3. The selling pressure was so strong that it closed below the opening price. 

In short, a shooting star is a bearish reversal candlestick pattern that shows rejection of higher prices. 

Bearish Engulfing Pattern

A bearish engulfing pattern is a (two-candle) bearish reversal pattern that forms after an advance in price. 

Here’s how to recognize it: 

• The first candle has a bullish close. 
• The body of the second candle completely “covers” the body first candle (without taking into consideration the shadow). 
• The second candle closes bearish.

And this is what a bearish engulfing pattern means: 

1. On the first candle, the buyers were in control since they closed higher for the period. 
2. On the second candle, strong selling pressure stepped in and the price closed below the previous candle’s low, which tells you that the sellers have won the battle for now. 

In essence, a bearish engulfing pattern tells you the sellers have overwhelmed the buyers and are now in control. 

Dark Cloud Cover

A dark cloud cover is a (two-candle) reversal pattern that forms after an advance in price. Unlike the bearish engulfing pattern that closes below the previous open, the dark cloud cover closes within the body of the previous candle. Thus, in terms of strength, dark cloud cover isn’t as strong as the bearish engulfing pattern. 

Here’s how to recognize it: 

• The first candle has a bullish close.
• The body of the second candle closes beyond the halfway mark of the first candle. 
• The second candle closes bearish. 

And this is what a dark cloud cover means: 

1. On the first candle, the buyers are in control because they closed higher for the period. 
2. On the second candle, selling pressure stepped in and the price closed bearishly (more than 50% of the previous body), which tells you there is some selling pressure.

Tweezer Top

A tweezer top is a (two-candle) reversal pattern that occurs after an advance in price. 

Here’s how to recognize it: 

• The first candle shows rejection of higher prices. 
• The second candle re-tests the high of the previous candle and closes lower.  

And this is what a tweezer top means: 

1. On the first candle, the buyers pushed the price higher and were met with some selling pressure. 
2. On the second candle, the buyers again tried to push the price higher but failed and were finally overwhelmed by strong selling pressure.

In short, a tweezer top tells you the market has difficulty trading higher (after two attempts) and it’s likely to head lower.

Evening Star

An evening star is a (three-candle) bearish reversal pattern that forms after an advance in price. 

Here’s how to recognize it: 

• The first candle has a bullish close.
• The second candle has a small range. 
• The third candle closes aggressively lower (more than 50% of the first candle). 

And this is what an evening star means: 

1. The first candle shows the buyers are in control as the price closes higher. 
2. On the second candle, there is indecision in the markets because both the selling and buying pressure are in equilibrium (that’s why the range of the candle is small). 
3. On the third candle, the sellers won the battle and the price closed lower. 

In short, an evening star tells you the buyers are exhausted, and the sellers are momentarily in control.