Get started

Bearishpattern

📉Bearish Reversal Patterns & Showcase📉What are Reversal Patterns? In trading, candlestick patterns are used to analyze the behavior of the market and identify potential opportunities to enter or exit a trade. Reversal patterns and continuation patterns are two types of candlestick patterns that traders look for. Reversal patterns are characterized by a change in the direction of the trend. These patterns indicate that the market is likely to reverse its direction and move in the opposite direction. In contrast, continuation patterns signal that the trend is likely to continue in the same direction after a temporary pause or consolidation. Reversal patterns usually take longer to form than continuation patterns because it's easier for the market to continue moving in the same direction than to change course. For example, if sellers are pushing the market lower, it takes more effort for buyers to turn the market around and initiate an uptrend. A reversal pattern may occur after a period of strong selling or buying pressure, as traders become exhausted or the market reaches a key support or resistance level. Once this happens, traders who missed the initial move may see an opportunity to enter a new trade in the opposite direction of the previous trend. However, for a reversal pattern to be considered valid, there must have been a previous trend in place. A sideways market cannot be classified as a reversal because it doesn't reflect a change in trend direction. Traders typically look for confirmation of a reversal pattern, such as a breakout from a trendline or a significant price movement in the opposite direction of the previous trend. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
📉 4 Common Bearish PatternsIn trading, a bearish pattern is a technical chart pattern that indicates a potential trend reversal from an uptrend to a downtrend. These patterns are characterized by a series of price movements that signal a bearish sentiment among traders. 📍Bear Flag 🔸 A small rectangular pattern that slopes against the preceding trend 🔸 Forms after a rapid price decline (flagpole) 🔸 The pattern is completed when the price breaks below the lower trend line of the flag 📍Descending Triangle 🔸 A bearish continuation pattern that forms with a horizontal support line and a descending trendline 🔸 Forms as the price reaches lower highs, while the lows remain at the same level 🔸 The pattern is completed when the price breaks below the horizontal support line 📍Rising Wedge 🔸 A bearish reversal pattern that forms with a series of higher highs and higher lows 🔸 The pattern forms as the price moves up in a narrowing range 🔸 The pattern is completed when the price breaks below the lower trendline 📍Triple Top 🔸 A bearish reversal pattern that forms with three peaks at the same price level 🔸 The pattern forms as the price reaches resistance at the same level multiple times 🔸 The pattern is completed when the price breaks below the support level, which connects the lows between the peaks 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Editors' picks
Education
by QuantVue
21
Price Action Candlesticks Cheatsheet — The Best Patterns!These different price action patterns are great for various situations. They can be identified at a Lower time frame or Higher timeframe, pick a chart and start looking at the candles! If you identify any of these in a chart you are looking at today, feel free to share them below. Here is a little more about bullish and bearish candlesticks: Bullish and bearish candlesticks represent opposite market sentiments in technical analysis. They are used to identify the buying and selling pressure in a financial market, and help traders to predict the direction of price movement. A bullish candlestick is represented by a green or white candlestick that has a long body and a short wick or no wick. A long green or white body indicates that the closing price of the asset is higher than the opening price. It signifies that buyers are in control and that there is bullish sentiment in the market. The longer the body of the candle, the more significant the bullish sentiment. On the other hand, a bearish candlestick is represented by a red or black candlestick that has a long body and a short wick or no wick. A long red or black body indicates that the closing price of the asset is lower than the opening price. It signifies that sellers are in control and that there is bearish sentiment in the market. The longer the body of the candle, the more significant the bearish sentiment. Traders use bullish and bearish candlesticks to identify trend reversals, support and resistance levels, and to confirm other technical indicators. When a bullish candlestick pattern appears after a series of bearish candlesticks, it may indicate a potential reversal of the trend. Conversely, when a bearish candlestick pattern appears after a series of bullish candlesticks, it may indicate a potential reversal of the trend. No single candlestick should be used to make trading decisions, and traders should always consider other technical indicators and fundamental analysis before making any trading decisions.
BITSTAMP:BTCUSDEducation
by Tradingstrategyguides
Bat Harmonic Pattern - Advanced AnalysisIn this series of chart patterns, we have taken a look at the more traditional ones. However, we have not yet discussed harmonic patterns. Harmonic patterns form a part of the numerous chart patterns available for the identification of reversal points. The practice of trading using harmonic patterns is often defined as "Harmonic Trading". We felt like it was an appropriate time to discuss the popular bat harmonic pattern, defined as "The most accurate pattern in the entire harmonic trading arsenal" by Scott M. Carney (1). "Suspicions in thoughts are like bats among birds." - Translated from Francis Bacon. 1. Introduction Unlike most traditional chart patterns, these patterns do not require breakouts of the price to be traded and involve the usage of precise Fibonacci ratios (highlighted below) for the identification of harmonic patterns. This makes harmonic patterns less subjective and pretty spooky. Wow. 1.1 Fibonacci Ratios Fibonacci ratios are key components of harmonic patterns. Fibonacci ratios are obtained from the Fibonacci sequence, whose n th element is obtained by adding the two previous numbers of the sequence, that is: Fib(n) = Fib(n-1) + Fib(n-2) The sequence is as follows: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233..., and exhibits various characteristics. One characteristic of interest is given by the ratios between elements in the sequence. The ratio of one element in the sequence with the following one approximately equals 0.618, while the ratio of one element in the sequence with the previous one approximately equals 1.618. These two values are often defined as golden ratios, with 1.618 being denoted as "Phi" (upper-case P) and 0.618 as "phi" (lower-case p). The ratio between elements separated by two positions returns 0.382 and 2.618 respectively, calculating the ratio using a higher separation would return the series of Fibonacci ratios. These ratios are also given by raising the golden number with specific exponents. 0.618^4 = 0.146 0.618^3 = 0.236 0.618^2 = 0.382 0.618^0.5 = 0.786 0.618^0.25 = 0.886 0.618^0 = 1 The rationale behind the usage of Fibonacci ratios with harmonic patterns (and other methodologies in general) is given by the presence of the Fibonacci Sequence in nature and certain organisms and structures, but more importantly in human behavior. If security prices reflect investor behaviors, it seems logical to find a connection with Fibonacci numbers. This is a common rationale used by technical analysts to justify the usage of Fibonacci ratios. A few studies aimed to explain a potential connection between the Fibonacci sequence and financial markets and evidence obtained by Bhattacharya & Kumar provide further incisive research on this connection (2). 2. Harmonic Bat Patterns The bat harmonic pattern is built from 4 segments connecting points X, A, B, C, and D, each one located at a local maxima/minima of the price. The relative distance between the segments is used to determine the validity of a bat pattern; these rules are defined as follows: 1 - Segment AB retraces within 38.2% and 50% of the XA segment (some less strict conditions only require a retracement within 38.2% and 61.8%). 2 - Segment BC retraces within 38.2% and 88.6% of the AB segment. 3 - Segment CD retraces within 161.8% and 261.8% of the segment BC. 4 - Segment AD is approximately equal to 88.6% of segment XA. For the pattern to be valid, the vertex given by point C must be confirmed. It is also interesting to note that the bat pattern can possess an internal AB = CD pattern. A reversal is more likely to occur within the "potential reversal zone" (PRZ). Traders can have different methods for identification however Fibonacci retracements are commonly used, with an extremity of the PRZ located at 88.6% of the internal retracement of XA and another at 161.8% of BC. Another method identifies the PRZ within 78.6% and 100% of the internal retracement of XA. Some traders wait for additional confirmation before entering a position such as the occurrence of internal reversal patterns, oscillator divergences, or for the price to evolve outside the PRZ such that it implies that a reversal is occurring. 3. Stop Loss & Take Profits Various techniques exist to set take profits and stop-loss levels during the formation of a bat pattern. Some traders place the stop loss at or a few ticks below X, which can lead to reduced risk but a higher risk of a premature trigger of the stop-loss. The usage of a very tight stop loss is mentioned by Scott M. Carney. A take profit can be set at point A. Additional Fibonacci retracements might be used for partial exits. 4.Practical Examples Bearish Bat pattern on USDJPY15, we apply Fibonacci retracements to the segment XA and use the levels 0.5, 0.382, 0.236 as partial take profits while level 0 exits the entirety of a position. Bullish Bat pattern under completion on ERGOUSDT 4h, the price breaks the level situated at point B is a good sign for a potential of reach of the PRZ. 5. Observations Oscillator divergences occurring when the price is within the PRZ can be an additional confirmation of a potential reversal occurring. We found no studies proving data that the bat harmonic pattern is superior to other harmonic patterns. One study by Krzysztof Bednarz highlights the profitability of the bat pattern in a trading period of 27 days (3). Bulkowski shares statistics on how often price turns at point D (4). For Bullish Bats, the price reverses at point D 91% of the time, for Bearish Bat patterns the price reverses at point D 86% of the time. Super spooky... References (1) Carney, S. M. (2010). Harmonic Trading, Volume Two: Advanced Strategies for Profiting from the Natural Order of the Financial Markets. Pearson Education. (2) Bhattacharya, S., & Kumar, K. (2006). A computational exploration of the efficacy of Fibonacci Sequences in technical analysis and trading. Annals of Economics and Finance, 7(1), 185. (3) Bednarz, K. (2013). Taking investment decisions on the futures contracts market with the application of Bat harmonic pattern – the increased efficiency of investment. (4) Bulkowski, T. N. (2021). Encyclopedia of chart patterns. John Wiley & Sons.
Editors' picks
BITSTAMP:BTCUSDEducation
by LuxAlgo
43
ONE OF THE MOST USED BEARISH PATTERNS: DESCENDING SCALLOPOne of The Most Used Bearish Patterns: Descending Scallop · The descending scallop is a bearish reversal pattern. · Descending scallops are common topping chart patterns. · This is a downward trending char pattern. · You can support me with your likes. · Also you can share your opinion with me in comments. · Attention: this isn't financial advice we are just trying to help people on their own vision. ·Have a good day!
Education
by CaptainBarbossa
2
Ascending Triangle - What's the phycological Truth behind this?We see many trend patterns while trading. One of them is ascending Triangle.You guys may rote that ascending Triangle is always bullish and it will be always bullish. But why it is bullish? Can't it be bearish any time? If not, Why? If yes, when? If you are finding the answers of these questions,this article is for you. Don't escape any line. Please read the full article. You will find your answers and will enjoy this article. Now Let's get into the topic✅✅ 1️⃣ You may know Uptrend is always bullish and Downtrend is always bearish. What's uptrend or Down trend? An uptrend is when candlesticks make HH and HL or same High and higher Low. In an ascending Triangle, Candlesticks make same High and Higher Low. So it makes an uptrend into ascending Triangle. As a result it is bullish structure. 2️⃣ You may hear this " The more times candlesticks touches the trend line the weaker it becomes." In aline cending Triangle candlesticks touch the resistance 3 times but touch the support 2 times. As a result the resistance become weaker and get broken. 3️⃣ So a ascending Triangle never becomes bearish? Obviously it does. When the trend touches support line 3 times,it becomes an Head and Shoulder pattern. And it becomes bearish and breaks the support line. 4️⃣ Another bearish form of ascending Triangle is when trend makes a double top pattern into ascending Triangle. ✳️✳️ Now where to take entries? Long position After the retest of previous resistance as support and short position after the retest of previous support as resistance. ✳️✳️Where to put SL? That's you all know where to put SL. You can put SL according to your bookish knowledge. But I prefer smart SL. I will share How to put smart SL in future. ✳️✳️Now I want your opinion. How's the article? Is it good or bad? I want to know your opinion eagerly. Please comment your opinion below. And A like is always appreciated. Thanks❤️
BITFINEX:BTCUSDEducation
by Jokers_Analysis
2
How To Trade Bearish Pattern's like Professional🗒 Just browsing through my analysis means a lot to me. ➡️ Please follow the analysis very carefully and every detail of the chart means a lot. And always entry depends on many reasons carefully studied Always enter into deals when there are more than 5 reasons combined ----------------------- How To Trade Bearish Pattern's like Professional ------- 1 ) Descending Triangle What is Descending Triangle --------- This Triangle Contain 3 lower Higher & 3 - 2 Same level - and that mean there is Selling Pressure on this area -------- Target will be The Same Distance From B : C - IF This Area 200 PIP Target will be 200 PIP -- Stop loss Above Down Connected line B - D ------------------------------ 2 ) Symmetrical Triangle What is Symmetrical Triangle --------- This Triangle Contain 3 Higher low's & 3 - 2 lower high - and that mean there is buy'er & sell fight's in this area - and the winner who will break that Triangle Target will be The Same Distance From B : C - IF This Area 200 PIP Target will be 200 PIP -- Stop loss Above Down Trend line B - D ----------------- 3 ) Triple Top Pattern WHAT IS A TRIPLE TOP? ------------------- The triple top pattern entails Three high points within a market which signifies an impending bearish reversal signal. A measured decline in price will occur between the Three high points, showing some resistance at the price highs Stop loss Above Half Distance From Top to Nick line ---------------- 4 ) Head & Shoulder Pattern Target Same Distance From Head To Nick --------- If The Distance From Head To Nick is 200 PIP -- So Our Target will be 200 PIP ----------- And Stop loss Will be 32 % Of the 200 PIP Distance --- Or Will be above Down Trend That Connected From Head To Right Shoulder Line Stop loss Above Down Connected line From Head To Shoulder ----------------- 5 ) Up Channel Pattern Target Same Distance From Upper line To lower line ------------- IF The Distance From Upper line To lower line 200 PIP -- So Our Target will be 200 PIP ------ Stop loss will be 32 % of Our Target or near From middle line Of Broken Channel Stop loss Will be Above Broken Channel Lower Line / Near Fro Channel Middle line Risk : Reward 1 : 2 / 1 : 3 -------------- 6 ) Inverted Cup & Handle Pattern What is an ‘inverted cup and handle’? If you look at the regular cup and handle pattern, there is a distinct ‘u’ shape and downward handle, which is followed by a bullish continuation. This means the inverted cup and handle is the opposite of the regular cup and handle. Instead of a ‘u’ shape, it forms an ‘n’ shape, with the handle bending slightly upwards on the chart. Stop loss Will be Above Broken Support Near From Handle Sell Here ------- Risk : Reward 1 : 3 - Same Distance From Cup to nick -------------------------- 7) Bearish Flag Pattern The bear flag formation is ------------ underlined from an initial strong directional move down, followed by a consolidation channel in an upwards Target Will be same Distance From Upper line of flag to lower line Stop loss Above Flag middle line ( Channel ) Sell Here ------- Risk : Reward 1 : 3 -------------------- 8 ) Double Top Pattern WHAT IS A DOUBLE TOP? ------------------- The double top pattern entails two high points within a market which signifies an impending bearish reversal signal. A measured decline in price will occur between the two high points, showing some resistance at the price highs Stop loss Above Half Distance From Top to Nick line Sell Here ------- Risk : Reward 1 : 3 - 1 : 2 -------------------- 9 ) Bearish Rectangle Pattern 4.Bearish Rectangle ------------- The bearish rectangle pattern characterizes a pause in trend whereby price moves sideways between a parallel support and resistance zone. Stop loss Will be Above Broken Rectangle or Near to Middle line Sell Here ------- Risk : Reward 1 : 3 - 1 : 2 ----------------------------- Hope you Enjoy Guys with this content Tumps Up Please and Support me with like and Comment
Editors' picks
BITSTAMP:BTCUSDEducation
by GoldenEngine
247
Head and ShouldersA Head and Shoulders Pattern is a chart formation that resembles a baseline with three peaks,the outside two are close in height and the middle is highest In TA this pattern it s essential to predict when a bullish trend will be changed to bearish This Head and shoulders pattern appear when: After long term bullish trend the price rises to a peak and after declined to form a trough The price will rise again to form a second high peak and declines again And third time the price rises also but only to the level of the first beak before declining once more The first and third peaks are shoulders and the second peak which is upper(heighest) will form the head,in this case head and shoulders will appear
Education
by CryptoRomaniaTD
2
CONTINUATION BEARISH PATTERNSBearflag:is a sharp,strong volume decline,several days of sideways to higher price action on much weaker volume followed by a second huge decline with a strong volume.Target is a NEW LOW Target: for a bearflag pattern is derived by height of the flag pole(ex if this height is 5%) the decline target for breakdown will be 5% Bearish Pennant:this pattern is bearish in nature and indicates that the current downtrend in price may continue.This pennant it s appear after a drop in price which will looks like a triangular flag as the price moves sideways .This slowly makes lower highs and higher lows which will confirm the bearish price action The downtrend continues with another identical-sized fall in price so here we have an oportunity for short trade Rising wedge:is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows.In Contrast to symmetrical triangle which have no definitive slope and no bullish or bearish bias rising wedges definitely slop up and have a bearish bias(in the final is a breakdown from this wedge) If we put this pattern at the continuation category the rising wedge will still slope up but the slope will be against the prevailing downtrend. The final break of support indicates that the forces of supply have finally won out and lower prices are likely.There are no measuring techniques to estimate the decline.
Education
by CryptoRomaniaTD