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Bearishpatterns

📉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
OIL: Contrarian setup aheadEverybody knows that oil is heading to the moon. In recent days, I've heard numerous estimates like $150. However, I think those estimates may be based on panic. Contrarians dare to be wrong, in the face of crowd sentiment - obviously. Everybody can see the same thing on the chart - a well formed rising broadening wedge in a bull market. Expand the chart a bit for a better view. This presents a good probability of bearishness, though price is moving north. For this sort of picture there is an estimated >70% chance of a reversal. What that means is that there is a 30% chance that price will reach the moon. But what traders want is a solid prediction - which I do not do, because I have no ownership of the future. Price doesn't have to get over 90. There is no rule that says wedges have to be 100% complete. But the pattern is sufficiently well formed once there are 3 important points on the upper and lower edges of the wedge. So - in the above I am not saying that 'oil can't go to the moon'. I'm saying there is a lesser probability of that. The red faded line is only to give a picture of what could happen. A line going to the moon would not fit on the chart. 😲😁 I'll be keeping my powder dry, whilst some punch the air. Not a problem. Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
O
by Captain_Walker
2
$BTC #Bitcoin Head & ShouldersPossible Pattern Forming on the 2hr time frame. Target of this possible H&S pattern is in the region of $35,000.00 and $34,500.00. Estimated time of the H&S pattern to complete it's formation if it is in fact one is 19.06.2021. This date coincides with my Death Cross which is on the Daily time frame. To have a look at the Death Cross chart please follow the link here: #Bitcoin Head & Shoulders Possible Pattern Forming Bitcoin-Death-Cross-Countdown to follow the actual live Death Cross with estimated time of crossing. For the H&S to become invalidated the price must reach the previous high or above the Head of the H&S. If this plays out then I will be opening a trade in the direction of the pattern which is a bearish pattern on confirmation of the breakout to the down side.
Short
by HybridTraderX
FCPO - Droste effectThe price of FCPO may having some adjustment after it climbed above 3000 from 2764. Once again, the price entered multi years supply zone which has been tested 4 times since late Dec 2016. Diving into smaller picture, the price is developing a potential bearish pattern. The construction of the pattern which developed another bearish harmonic pattern in H1 time frame. A potential reversal pattern before completing a bigger pattern. A potential trade opportunity if the price action tested & rejects from area of 3133 & fall back into the potential entry zone (small blue box) with a potential target price of 2970 & 2891. Signing out.
MYX:FCPO1!Short
by FXCruZaDer82
$District0x , $DNT looking For It's Chill... Weekly Looking at our highest timeframe we see price has broke it’s uptrend from March back in May. Price has since been in a bear market, stochastic rsi showing momentum continuing towards the downside. Expecting a drop towards 575 if we do not hold at this level. Daily Shifting over to our pattern timeframe we see price is respecting a bearish channel, DNT has pierced our major support zone. Stochastic RSI showing momentum is extremely bearish with no signs of slowing down. Next major support level at 550-575 satoshis. 4Hour Finally looking at our trigger timeframe we see price has broken and close below our major support zone. Stochastic RSI showing momentum is heading towards the upside, however price action is showing otherwise. A 4hour close above 750 activates our trade, however if we fail to close above this level expect the sell off to continue. Conclusion Wait for the drop towards 550 / 4Hour close above 750
DLong
by UnknownUnicorn2434649