Top 7 Most Useful Bearish Candlestick Chart Patterns Every Trader Should know in the Stock Market

Bearish Candlesticks – Today, we will discuss the different market patterns forming and after that formation in the market trend gets changes ultimately. You know very well the trend is a very important part of trader life. In another way, you can say the trend is the backbone of the market or trader.

You should know about seven bearish candlesticks patterns continuously forming inside the market, and whenever it starts forming, the rally comes into the market. They can change the trend in the market because they are made only to terminate the trend of the market.

In the stock market, every pattern has its importance. By using the chart pattens you can Improve your trading skill without spending a long time. If you are spending more and more time in the market its means you are learning very slowly and accurately.

Gravestone Doji the Bearish Candlesticks –

There are one of the names of the most famous patterns is Doji. Whenever its forms, it indicates that the market will now go to the opposite side. Friends often become the absolute top of the market.

And it shows that the bullish trend in the market is over in other words. It will make the end of the movement. And give a stern message that the market will move on the opposite side. The Doji shown inside this cheat sheet is Gravestone Doji.

the gravestone doji

Here in this doji, there is no confusion between buyer and seller. Why is it because the doji has given their closing nearest open? From this, we know clearly that the buyers have lost control, and the seller has taken over.

The thing to know is how did we find out. You must understand that Doji is always performing on top of the market. Secondly, it has it gives its closing exactly near the opening.

How do you know that this Doji has been performing at the top where the market trend is ending? And from there, the market hits the reverse.

Shooting Star Bearish Candlesticks –

It’s Time to know what is a shooting star. Friends, it almost looks like a Doji, but a body is inside it. Mainly the color of the body does not matter.

Whether the body should be red, whether it should be green color or the body should be. The most important thing about this pattern. Whenever it performs, then the trend of the market will reverse.

In this pattern, we can see that the buyer had put full force into moving the market upside earlier. But after the level seller activated there And started pushing the market downside. After that, the candle almost closed near its opening.

bearish candlestick chart pattern shooting star

I have already told you that there is no importance of color inside it, then it is of the body that the size of the body should not be too big But the height of his shadow should be about 2 to 3 times more than his body.

It’s the golden rule. If its body size is equal to the size of the shadow, then this pattern is useless to us.

And trading on it can be dangerous, so whenever you change. First, you should read the above condition and only then put your trade on this bearish candlesticks pattern, so you do not bear the loss.

Bearish Engulfing Candlestick Pattern –

Friends, have you ever seen a swan who eats fish, his beak is vast, and he eats the fish at one Time? This pattern is also looking like a swan. Because this pattern also eats candles. Let’s discuss how to eat.

This pattern formed at the top of the market. Where the trend of the market is ending. After the formation of a way. The market starts moving in another direction in Bearish candlestick Patterns.

This is usually a three-candlestick pattern. The below the third candle, we can take trades on it.

It’s Time to know-how is the pattern will perform. First of all, you should keep this in mind. This pattern is perfume on the top. In the first, a green candle is performed. Immediately after that, another candle is performing whose color is red.

Bearish Engulfing Chart patterns

And that candle completely covers the previous green candle, meaning that the red candle breaks both the high and low of the green candle. And while doing this, it gives closes.

Now comes how we can trade on this. We need one red candle that closes below the red candle. And after that following candle breaks, it is low; then we have to trade from here and put a stop loss on engulfing high.

And the target is to keep at least two times the difference between the entry and stop loss. Profit booking is perfect for every new or existing trader.

Piercing Bearish Candlesticks

Friends, this is also a critical pattern capable of changing the market’s direction. Because this pattern is rarely performed in the market, this pattern mainly performs larger timeframes.

It is a bit difficult to identify it, you will have to work very hard to identify it, but I will tell you this in easy words, how you can catch it in bearish candlesticks.

Friends, this pattern is usually performed to end the market trends. And it performs at the very top of the market, after which it will reverse. Friends, it comes to how we identify this pattern.

Piercing candlesticks chart pattern

Friends, this pattern is not unlike a single blue friend, but the work is even more accurate with Bearish candlesticks. How is this pattern performed?

Friends, first of all, there is a bull trend in the market, and in the end, a big candle performs, and soon after that, another candle performed with a little red gap comes in that red candle; there is a slight difference.

With the little gap, the candle opens. This pattern often works to reverse the market and is rarely performed.

How To Trade

Now it comes to how we can trade on this pattern. Friends, before trading, we have to see its trend and tendency; if the movement is in an uptrend and performed in the way, then we will sell here.

When the Pierson pattern performs, we must remember how much it covers the previous candle. If it is covering more, then we have to ignore this trade, and if it is reducing a little, and with that, it is not good.

A small red candle below this pattern will give a closing. Only then will we sell here and place our stop loss at the high of the piercing way.

Bearish Candlesticks Pattern Tweezer Top

Friends, as it is clear from its name. This pattern is also performed only at the end of the market trend, and then it declines. Friends, in this pattern, two candles are the same. Whose high and low are almost equal, but the close of its body is not in the form of a shadow.

tweezer top candlestick chart patterns

As you can see in the above picture, the top is being made at the top of the market. This pattern we call tweezer top. So now it comes to where we have to take entry here.

Friends, in this photo, you can see the low of the tweezer top. Below that low, we have to take entry and put our stop loss on the tweezer tops high.

Bearish Candlesticks Patterns Three Black Crows

This pattern is rarely performed in the market. But whenever it is completed, it shows apparent selling inside it. Guys can’t catch this pattern easily because it is widespread inside the market.

This can be traded only by a good trader with a good hold on technical analysis. And a good trader sells it very well.

You have easily seen in the picture the pattern is exactly like the simple candlesticks. It isn’t easy to get caught up in this. But once it is detected, it will make you an excellent trader. Friends, now it comes to how we got caught in it.

three black crow

Friends it will make on the top of the market. Their body size will be almost identical to the three continuously falling candles. Its shadow won’t be much long from candles. Now how can we get a trade on that pattern?

We can trade below the low of the third candle. And place your stop loss slightly above the first candle with buffering. That’s all you have to do; after that, you can trade comfortably and become a good trader.

Bearish Candlestick Patterns Evening Star –

As friends, there is a night after the day; in the same way, the night starts inside the stock market after a day. And the night’s beginning is the pattern named Evening Star inside the market.

Whenever this pattern is formed, the market has a significant downside. This pattern is straightforward to trade, looks very lovely, and you can catch it very quickly.

You can see in this photo how the evening star is preform. The massive list buying is coming continuously. After that, the red-colored candle is performed on the top. And this indicates that there is an evening star performing in the market.

evening star

As soon as the Evening Star has formed. The market will come down soon. It’s like night after day inside the market because it pushes it from top to bottom.

Friends, now we talk about how we have to take entry into this pattern. We can short below the red candle after the evening star you see, And we have to put our stop loss above an evening star In Bearish Candlesticks.

And the target is to keep at least twice the difference between our entry and stop-loss points.

Friends, this was our explanation of these seven patterns; you must have liked it very much. Friends, no, bodies are born great in this market, but they become significant. We must do hard work to become successful full traders in the must-do hard work ever to Give Up.

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