BEARISH ABANDONED BABY candiestick rater signaling 2 major top revere tis exactly the sare athe Bearin Evening Daj: Sta wihone importrteiffereren. The shadows on the Daj must ssa gap anove the shacons ofthe fst and third cave. te name comes from ti second day of ths pater, which eat aut onthe char by it lke fan abandoned baby ofthe fst. and thr days, Sas the pattern consis of whte candlestick followed by Dai that gape away Gncluding shadows) fem the ar white candlestick andthe following black candlestick ‘whose casing is wel int the re white body Recognition Criteria 1. The marke is characterized by 9 prevaiing uptrend 2. wht candlestick is cbserved on the fst day. 53. Then we ses 2 Das onthe second cay hase shadows gop shove the aevious day's unper shasow. 4. The day's black candiastice gaps inthe oposite direction wth ne shadows averapping. Pattern Requirements and Flexibility “The Bearish Abandoned Baby should tart with 2 white cancstick tate not shor, and it must continue wth 2 Deli sccompariad by a gap avay frem the prior candestcs including shadowe). The tid day ofthe pater = 1 black cansietick, The gap betwen the high of hs candlesick end the low ofthe Daj maybe null The Hack Candlenick must ccee well ise the whitacondesic that appears st ths beainnng ofthe pattern The extent of how lo this candlestick must ose is defined eccording to the other candlestick belonging = the pater. The third days closing must reach the midpirebetwasn the firs: days opening and the second days highest body Trader's behavior A uhite candlestick confers the cntnumtion of the uptrend thet ix in progress. The eppearance f the Dei accompanied by = huge dap incicats that he bulls are stil bushing uo te fie. Howaver the ight price ation prices dep ower an the open and thas close much lower Bear have aun contel ofthe Marke. . ‘Sel Stop Loss Levels “The confirmation level is defined 26 the last close, Prices should cross below thi evel for confirmation “The stop loss levels defined ax the higher of the lst to highs. Flloning the bearish signal, price go up Instone of going doun, and eles or moe two conscatve cal highs above tre stop los eve, whe Ellsh pattern detected, then the stop oasis triggeredSiettnae in Ee trance Saher “nese markets pissse Score ed le Bsc ear sete thee ad idea sto te paar seongth nd Gb) 3 help BEARISH ADVANCE BLOCK ‘This pater consis of tree consecutive white candlesticks wih consecuvely higher closes in an uptrend. 4. The mariatis characerzed by a prevaling uotrend. 2. A whte candlestick appears onthe frst day. 5. The next wo days are vinte candlesticks wih each dosing above the previous day's dose and having an ‘opering wthin th range oF the previous cays bey. 4: The let to doys have long higher sheds. Pattern Requirements and Flexibility ‘Te first cancesuck of a Bearch Advance Block should be 2 normal or long white candestisc. The following consecutive whe candlsticke must opan winin the range ofthe previous day’ body, and dose above the previous dey’ clove. The bodies ofthe three white candlesticks should get shore, while the higher shadows Getlonge “Trader's Behavior ‘A etrona whita candles is followed by another white candlessck closing above the pravious close. AE tHe congestive white candlercke ecu the uptrend eeema gecure and the buls ere contant. The secure upirend ‘ec more bull, and the Shird day ie again a white candlatex thats dosing above the previews day's doce. Wah three white candlesticks, locke az though bulls rule over the market; however there are sg of vweakaesces. Frat the Lode get shorter and chore, showing that indescion is increasing, Se2ond, each day Seoond and the tid days are dosing hichet, the dstance between closes are geting short This means that ‘he uptrend slosing rength and shat buyers must be eauteus Sel/stop Loss Levels confirmation, ‘Te stop lose levee defined ae the higher ef the last two high Fllwing the beans signal, if press go up Instend of going down, anc lose or mnie two consecitive day highs above the stop oss evel, wile no Bll sh Fathers deta tas the Stay ees treo.BEARISH AFTER TOP GAP DOWN This is 2 five candlestick pattem that stats wih tee white candlesticks. The market signals a top eversa wih fe change inthe exer af the feurth candlecide. The nextday gaos lower and makes strong downwaré ‘move, caning the reversal Recognition Criteria 1 The pattern begins vith «white candlestick 2. The nox ko daye ae alco we dave, and each one closes higher than the previous day's clase. 3. The third day gaps up and opens above the close ofthe necond ay. 4 The fourth dey i bled Pattern Requirements and Floxability opens ane higher doses. The thed whe should gap up. Te fourth day i @ back candlestick Dat opens lower and covers the gap, The fith day is a strong black candlestick that makes a body gap withthe fourth doy There aren short candlesticks in the paltere “Tenders Be “The fist tes white days andthe sopping up third white dey create « market with an extended bulishness. The fourth ay is 9 song bisck dey that shows that there ight be some weakness finally inthe uptrend The FE day gope doun ard clozes near ie lows cresting strong back candiestick It now appears tht the mere! ‘erestendod oof othe peice and a reversal ofthe pris tren hae begin ‘Sel/Stop Loss Levels ‘The confimaton lave defined 28 the Inet clos. Prices should ees below thi level fr confirmation. ‘The stop los level ie dafied asthe higher of the last tno highs. Following the beach sar if rises oo us insted of going down, end dose or make two consecutive daly highs above the stop es evel, whe no bulish Dattern is detected, then the sap losis riggedaboroe ine seme or ees aoe esis pee BEARISH BELT HOLD Definition Search Bot Hold ie cngle candlestick satem, basicaly 2 slace Opening Narubozs that occurs in an ustrand market which overtually stone witha closa near he low, lsaving a smal shadow at tha bot ofthe candi, IFlonger bodes charece-e the Bel Hold then the resstance they cffer against te trend wil be even uC 1. The market is dharacteriad by 2 orovaling uptrend. 2. The market g965 up and opens ait high and closes near tthe low of the day. 5. Along black body that has no upoer shadow (2 Slack Goering Marubo2u) ie cbserved Pattern Requirements and Flexibility ‘lack Opening Marubeau cr 2 Slack Maruboau (uth no unser or loner shadow) shouldbe seen, andit shoud ‘pen higher than the two pracedng whe candles, Trader's Behavior ‘The market opens higher wth a sigiiart g2p in the direction of the prevaling uptrend. So, he Ast Impression reflected in the opening pics s the continuation ofthe uptrend, Homeve, aftr the markat opening, ‘tinge change rapidly andthe market moves inte onpesia dias fom ehera on, This causee much concer sriang the bul leading ther to zal many postions, which could revere the direction of the trend ard start = elo Sell/stop Loss Levels ‘The confirmation level defined ae te se close. Priessenoul eoge below he lvel fr confirmation. ‘The stop lace lovl is defined as the lat high Following the bearish signal, if prices Go up intead of gina dom, end close or male two consecisve daly highs above the stop losz level, while ne bulish paar = Setected, then the tcp loss is wiggered.BEARISH BREAKAWAY Definition ‘This four candlestick pattern start with tong white candlectick. The neat three days ater te upcide gap ext conceostvaly dhe rises However the lace day completa erasos the limited price gains of up dave and (dees ah gap bbe Nock oe ceed pe Tits Sige si en ee Recognition Criteria 1 The clr ofthe fit strong white day represerts the current uptrend 2. The cond day is aloo white and the Body qaps inthe dracon ofthe trond 2. The thie and fourth deys continue the trend deci, Te is bei ithe third ay i black, bit my lao be white 2 the fourth da Pattern Requirements and Flexibility “The fat white candlestick of the Bearish Sceakavay should not be short However the folowing thes wile candlesticks afer the gap can be short whie the tid candlestick in the middle can be black, 00. The last Trader's Behavior “The uptrend has acealerated witha bg gop and thes starts to fale, bt sill moves in the same director. The slow deterioration of the vstrend is cute vider. Fray, 2 downward move completly reverses the previous reversal has taken place, but sil = confirmation may be necessary. ‘Sell/Stop Loss Levels ‘The confirmation level i defined #5 the last close, Prices should cross below thi level for confirmation, “The stop loss lave is defined as the last high. Flowing the bearish signif prices go up insted of going own, and close or make two consecatve dy highs above the stop loss level, whe no bulls pattem is {elecied, then the sop oes ie tiggered‘To ase the sefermance af the pattern in your stoce Seige ts BEETS Sots Soka peese BEARISH DARK CLOUD COVER ‘This is 2 top roveral patam with oo cordastics, A white candectck anpears on the first day uhilo an Lptrenie i progres. The second day opens at = new high, with » gop up end doses mare han haley its ‘the prior white body, leading to the formation ofa trang black candies, Recognition Criteria 1. The market is characterized by 2 proving urtrend. 2. Ait candlestick apaears onthe fst de. 5. black candlestick opens on the ceoand day with 2 gap up and closes more than hallway into the body cf the ft nv 41 The second day fal to dose below the body ofthe Fest day Pattern Requirements and Flexibility ‘The fist day ofthe Bearish Dark Cloud Cover pattern is 2 normal o lena white candlstck. The sacend day should open wel above the close oF the ist day and cess mare than huni the prior white candlesticks body. However the cose ofthe second day mast stay inside te body f he fist cay. ‘The marist moves in an uptrend. The Fist white body reinforces this view. The next day the market opens highor via_2 gan, showing erat the bulichnecs stil pari. Afr this vary bullch open, bears decide to tke the lead. The markat plunges toward the dose, prices start to go down resulting in a close way below the previous days close ow tha bul are losing thar confidence and are reavaluating thee long eeetone. The potential hort sellers ar thinkng that new hie may net held and perhaps tie Smet take short postions ‘Sol/Stop Lose Levele “The confirmation level delined 2 the lac close, Prices should cose below thi level fr confirmation ‘The stop loss level is defined as the lat high. Following the bearsh signal, if prices go up instead of going own, and close or make two consecutive daly highs above the cto loss level, while no bullh patricies" Soouk ‘Se poem avenge ond tabi sro hes BEARISH DELIBERATION BLOCK ‘hie atom consists of three conecotive white candlesticks with ceneseuvaly higher doses in an ustrene 1. Markat ie characarzes by 2 praveling uotren, 5. The naxt day is ancther white cendestic, which opens within the range of the previous days body and 4. The fal day is ashore white candlestick, a eninring top or @ Daj that cape un above th sacond day. Pattern Requirements and Flexbiity ‘The frst sao white candlesicke appearing in the Soarish Oeerstion Block should not be shor. The second hove th cces of tha fret cay. the aapain up final candlacticé canbe a chor whit carci er 3 Doi. ‘Trader's Behavior ‘Tha two concecutve white candestiis socure the uptrend, and the bulls are content withthe situation. The secure uptrend atrads more buyes, and the thi doy cpens sbove the clas of the preceding éay. The thie f5y ie azo 2 whe day, mating te bulle even more confident about ths continuation ofthe uptrend. & doser Took, however, revels thatthe ustrend fs clvng signs of weaknesses. The range of each body is geting ‘maler day-by-day andthe thie day gape up making a sar, which shows indecision. Sell/Stop Loss Levels ‘The confirmation lvsl i defined ac the midpoint betwosn the let dose ard the body top ofthe second day. Pres shoul cross below ths lee! For eantrmaton ‘The stop loss levels defned as te higher of the Ist to highs. Following the bean sgn pnces 90 oe instad of going down, end dose or make two consecutive dally his above te stop less leva, while Bllsh pecomnnt ft saecke wr ees tewras, de astaTeese Oe pefomanc of the patie in your tok os Ri Teontams sverath and vekebity and ha BEARISH DESCENDING HAWK Defintion This pater is» small white body contained by 2 prior relatively long white body: It esembles the Harem pater, except hat both bosie are white. 4 The markt is characterized by 2 prevaiing uotrend 2. A wnt body is served onthe frst doy 3. On the cecohd dey, we again zee Wnts body which i completly engulfed by the body ofthe ret da Pattern Requirements and Flexibility ‘The Bearish Descending hank const of two white candlestick, in which the Ft day= white body engulfs the following white body. The fret ove has to be ® normal or long white candlessck. Ether the body tops oF the body botioms ef the ta earaleticke may be a the sme level, bu whatever the eaze, the body a the neon day should be sre than the Firs. Trader's Behavior This pater is» signal of disparty. In 2 market charactenzed by uptrend we fst ses envy buying indicated by the utile body of the fat dey. However « smler body thet appesrs on the second day points to the finiahed power and entusinem of ne buyers this suggesting 3 trend rovers Sell/stop Loss Levels ‘he confirmation level is dened as the last cose or the midpoint of the previous white body, whichever i See es otc at eo Bs vel or it The stop las eval is defined asthe higher ofthe leat imo highs. Falloming the bearish signal i prices go up inet of coing down, and clos or maks two consecutive dally hiahe above the stop lec ave, whe no Bish pattern is detected thon the top oss i triggered.eS ees TeiSigal, BESSON So, aa lone Sie oak Ee pars srenats end shaban ee BEARISH DOJISTAR ‘his patem apoears in an uptrend and worns thatthe tren wil ange. (econsist oF wnte candlestick and» Do wih a gap up at the opening. IF tne Doi fem the form of en Umbrella the paar is called "Search Drgony Day" In cose ofan Inverted Umbrein ti exled“Beansh Gravestone Doi” Here, sllthese poems sve subsumed Under the neme: "Bearish Do} Star, regardless of the shepe ofthe Do. Recognition Criteria 1. The market is characterized by «prevaling usted 2. onthe fre doy 2 uhite candlestick is cbsorved. 5. Then, we sea Dajin the secord day that eps op. Pattern Requirements and Flexibility ‘The Bearish Do} Star should start wth normal or lang white candlstic must continue mith « Dil gapping ‘Trader's Behavior “The market i nan uptrend and n trong whe cansestic further confims it.The next day opens higher wth 1 0p up, and the reding isn = small ange, The dey doses at the opening price, leading tothe formation of = Doi Els were in conto! cing the vtrans but now a change i implied by the appesrance of 3 Boj ety faverabe fer se continuation of s bull marke, Sell/stop Loss Levels “The confirmation lave is defined ae the midpoint of she gan betes ‘he Dai and the previous canes inetad of going down, and dose or make two conoscutve dally highs above tha sap los lava, wha ra ullch potter is detecea, sen the sop lose is iggere,Te sce the gufomaree of the eater in your stock ‘a Soh oan Srengih and reksbiy and hele BEARISH ENGULFING Definition “his pater is characterized by a large bisck body engufing a preceding smaller white body, which appears dhicig em uptend. The black body does net necessarily engulf the shadows of the white body but totally ‘engulfs the body sel Thee an import ton revere era 1. The markets chraeterizod by a prevang unten '5. The lac body tat is formes onthe escond day completly engulf the whita body of he preceding day. Pattern Requirements and Flexibility ‘ne length of tre Firs white candlestick isnot important. It ean even be a Dei The second one, however, hs bo a tho came lval,butin any c3ee, the Back beey ofthe Bearin Engufing Paar shouldbe longer tha tho While the market is characterized by a definite upiend, lower velime of buying observed wth the occurrence ofa write boey on the fr day. The newt day, the market epone at naw highs. (looks asf there's gang tobe mere bulish reding, however the uprend lores momentum ard te beefs tke the fend ducing the day. The seling pressure overcomes buying and finaly the marks doses below the aren ofthe previous day. “ne uptrend = mages Selt/ Stop Loes Levels oun, anc cose or make two conescuva dally highs above the stop lese leva, while na bulich pater is detected, then the sop loss is thagerec‘Sa Slout She potions shenath and relatly 20d hap Secret eee BEARISH EVENING DOJI STAR Definition ‘This isa three-cndletce pattem signaling 9 mar top reversal. tis composed ofa wht candlestick flowed lope Doj, which cherecteratclly geos up to form a Day Star Then, we hve third block candlestick whose Cocng i wel no the fist sesion's wnte reo body. Tiss» mesring® top pare. 1 The markets characterizes by = prevaling ustrend 2. Wace 0 bite canes onthe frst day. 5. Then, we 600 a Desi onthe escond day hat gaps in he dracon of the uptrend. nttern Requirements and Flesiblity “The Bearish Evening Oxy Star sare with a whe candlestick and # should continue with» da mecemponied by 2 0ap opening higher than the cosa of the fret day. The third day ofthe pattern i 2 blade candlerdck, which hos the seme o- lower opering ance with te Da}, ond ¢ should cles wel into the white condestick thet appears atthe beainnina ofthe pater The extert ct how lw ths eandlesick must dose ie defined according te the athe candlestices belonging te te pater. The third day's dosing muse reach se midecine between the fist days opening andthe second day’ highest body love, “Tender’s Behavior ‘an uptrend is being observed, and the white candlestick confirms the continuation of the ustrend. The appearance ofthe bcs aeomperied by » gop inceates tht ule are stil pushing up the ance. However ths tight price action between the open andthe close also shows indecision. On the tie day, prices gap omer On the open and tan cose much inna Sears nave taken eartral ofthe marke. ‘Sell/stop Loss Lovels “The confirmation lve! i defined 2 the net lee, Prices ehould cose blow thi level for confirmation. ‘The stop los level ie defined as the higher of the lst two highs. Following the bearish sora if pices ao uo insteed of going down, and cle or make tea cansectve dell highs above the stop lor levee na bullish pattern ie detected, then the stop lo ie triggered.Tapas foe peormance of the pate in your stock idee" Shout he peters svenath and vekeity and hep BEARISH EVENING STAR Definition ‘This sa three-cndestick pattem signaling 8 mar top reversal. tis composed ofa white candlestick flowed bop choct candlestick, when charactenctcally sepe up to form @ rar Then we have a third black candlestick whose casing is wellint the frst sessions white Body, Theis 8 meaning sep pater 1. The markt is charectered by 3 prevaiing ustend 2. Wane = white condlestice onthe frst day 3: Then, we see ashore canelestick onthe second day that aapsin the direction ofthe uptrend 44 ANlack cadet cheerved on the thd day attern Requirements and Flexibility “The Bearish Evening Star sere with» while candlestick end it should continue with a short candlestick (whe or bie) that opens wh a 999 up. The Dek candlestick appearing onthe shire day sould open ator wor than the Highest level of the body ofthe second candle, and shoul! lore wel ota he white cance that aogsare at the beginning f the pata. Ths extent of how low thie candice must cose is defined accoring #2 the cher candlesticks belonging ta the pattem. The third day’s closing must each te midpoint between the fist day opening andthe cocond day's hichert boty lavel ‘Trader's Behavior ‘an uptrend is being observed, and the white candlestick confirms the continuation of the uptrend. The appearance of the shar condestice that rakes 2 gop indiates thet buls ar= sil pushing up te price weve the Wott arice ation on the eecond day batwasn te open and the close shows indecision. The third day is 8 black body thet moves int the Fst dey's white body. A signfcant trend reversal has occured ‘Sell/Stop Loss Levels ‘The confimaton lev! is defined asthe lst lae, Prices should cross below this level for confirmation. “The stop loss levels defines as he higher of the ist to ign. Flowing the benrh scr, oices go vp ingtead of acing down, and dose or make tno consecutive dally highs above the stop less lave, while ra Bllsh prtern detected, shen the snp Ins is tianeresSoothe patare's svengin snd relcbley snd hap Some BEARISH HANGING MAN befiition ‘Te pattem oscars atthe top of trend or dusing fn ustrend The name Henging Man comes from the Fac that lhe andlor looks comeuhat like @ hanging man. i single canlersck pater thot has long lower shadow ond n ml Body ator very near te top of t= diy eadng range, 1. The markets charatenzed by 9 prevaing urren. 2. Asal eo body the upper end ofthe eading range i observed. The coor ofthe body snot important 4. The lower enacow ofthis eanclemtio ie at last ice ae long ae the body 14 There almost) no upper shad Pattern Requirements and Flexibility ‘Te body ofthe Hanging Man should he smal, The lower shadow shouldbe at loot tice aa lng na the body, bbtrot shorter than an averaoe candlestick, ie dedred that the upper chadow is very ema or betor ni. The to ofthe Hanaing Man's body shouldbe above both ofthe two preceding whit candlesticks, “rnder’s Behavior ‘The Hanging Mon is 9 bearish reversal pattern. It signals 2 market top orm restance level. Since seen afer an advance, it sana that sling pressure is starting to increase. The long lower shadow indicates that the selers pushed prees lower curing the session. Even though the bulls regained thelr foetng end drove ices higher by the Finish, the appearance ofthis seling pressure after 2 raly i 2 serious warning signal the boy i bia, & shows tht the closs was nor able to get bak tothe opening price level, which hae potently mare bearish mplistions: Selt/Stop Loss Levels ‘Te confirmation level defined ar the midpoint of Hanging Man's lower shadow. Pricer should crocs below thie level for confirmation ‘The stop loss level is defined a6 the higher of the ast two highs. Fllonng the bearish signal if ries go uo pattern is detected, then the stop loss is tiggered. :BEARISH HARAMI CROSS “This & major beareh reversal pattarn, whith is even more significant than a regular Bearish Haram. Te tina again looks Ile 2 pregnant women, a= with te Search Harami Pater. However, naw the E9by ie 2 Do}. Bascal, the pattern i characerzed by # white body followed by = Daj that ix completly inne the ‘ange ef the oor white bods, Recognition Cterta 1. The markt is characteriad by 2 arovaing uptend. 5. The O9j thats formed on the second day is completely engulfed by the body of the fst day Pattern Requirements and Flexbility “The Bears Haram’ Cross consist of two candlesce, in which the body ofthe fist white candlestick engulfs ‘the body ofthe folowing Doy. The body ofthe frst candlestick may be shor. Trader's eehavior A ullsh mcd prevails inthe market, and an urrend isin progress. The Rt day's canaiesick sa hte body, which furner euppore bllzhnere. The nextday, honever prices ope lover than the dase, ara the core of ‘he presecing day. Yihats worse the market closes st the same price nek openes, This implies 9 somplere lace of decinon, ard an imminert reversal inthe current uptrend Sell/Stop Lows Level 1 change wth raepect tothe boc langin of the fret candles: 1 tf the fret white body is chon, then the confirmation level wills the body bottom ofthe frst candlestick, 2. tf theft white bod is net shoe, hen the confirmation level willbe defied asthe last dose or the midpoint ff the white body of he fret candlestick, uhicheverilwer Pree eneuld eroce below these levee for eofirmation, ‘Tha stop los level io defined as the higher of the last two highs. Following the bearish signa if prices oo ua Gately fre ete nes roamed tay hota te bes evel rs a Batter i detactag, than the stop lose is triggeredidea! stoat re ptf, strength snd vecily abe BEARISH HARAMI ‘This pattern consists of 2 white body and 2 smal black body thats completly inside the range of the whice bedi ifn cutine i rau for tha pater, i looks ike a pregnant woman. Thsis net a coinadance. “Haram” ‘sold Jepanese wor for"pregnent™. The white condleatic ithe mother’ and the smal candleaick = “he baby 1. The markets characterized by a prevaing uptrend. 53. The black body that i formed onthe setond day is completely engulfed by the body ofthe fist day. Pattern Requirements and Flexibility ‘The patie consists of two candlesticks in which the st days white candlestick enguls the folowing day's biel cancestick. The rt one shou be » normal or ong wnte candlestick, Ether tre body tops ar the body bottoms ofthe tea catlesscks may be atthe same level, but whelever the care; the black body shoul! be mele than the pevious white body ‘Teader's Behavior ‘The Bearish Haram ie a sign of ispary nthe mare's heath. The mark is maracentd by an vntrend and 1 bulsh mood, and there is heavy buying indicated by a white body, which further supports the bulshness. Howaver the next 23y pricss sn lower or at the close ef the oracecing day and stay in a small range ‘feoughout the ey closing even lover bit sil yn the previous day's Body. Traders are now cencemes| about the arenath ofthe markal de tothe suddenly deteriorating trend Sell/Stop Lows Levels ‘The confirmation lavas defined as the last dose or the midocint of the fist white body, whichever is omar: Prices should rss below tis evel for confirmation. ‘The stop loss level ie dafinad ab the higher of she last swo Highs. Following the bearish sian if ries oo uo instead of cing down, and dace or make two corrective daly highe above the sto lone level while no balieh pattem is dtecad, thon th stop loc ie wagered.BEARISH KICKING Definition “This pelter cansnts firstly of @ white Maritony and then « back Morubors. After the white Marubaz, the ‘market opan below the prior sescion’s escring, forming a gap Betwean the two ings. 4. The markt is characsrize by a prevaing uetrend. 2 On the fet dy a whe Horubozu ora white candlestick) ix observed 3: Than we soe 2 black Maraboau (or 2 black candestic) on the second day. 4 The second dey opens ower wih e body gop Pattern Requirements and Flexibility “The Bearish Kieking dealy should corsitof « te Marubons fllomed by « black Maruboru tha body cap in between. However, we accept normal or long candlesticks ard a nul Lady gap, 12 Thc way te Search Separating nex Pattern, which i= « continuation patern (thet i rot covered here), also ilided in a modified manner a6 a vaversa pattem ‘Trader's Behavior “The patiem is strong sian showing thatthe market is headed downwards t appears in an uptrend nd on the feeble sheng lt carts tie cos the HRSfnen Tis meats peter on fece) He previous days open causing @ gap. This huge gap urges the bears t take ation. Te market heads down no Sell/stop Loss Levels downy and core of make vo conceclive dey highe above the stop Inee level, le no bull pattern detected, then the sop less is tazered.Sechange in Die content ot other ‘tose ce BEARISH LADDER TOP Definition This n= five cancletick patern thet starts wih thee strong white condlestices. The uptrend continues with the fourth higher dace. The next day aan lower and doses much loner than the previous day or two, Tis may imply a bearish reversal Recognition Criteria 1. The market is characterized by #prevaling unrer 2. Thr cong white candleticksoosut much ike the Three White Sldiers patorn. 5. The fourth white condlestice cates nia higher but has lang lower aed, 4. The ith dey i strong black with an open below the previous day's bod Pattern Requirements and Flexbility ‘The fet the days of the Bearish Ladder Top are crana white candlesche with consecutive higher opens and higher closes The fourth day is @ short whte candlestick, but @ opens lwer and trodes Inwer, lening «lang lower shadow, then doses raking a new high. Te fith day is @ stong blade candlestick that makes = body Trader's tehavior eee Pricer start trading below the opening price and almost reaching to the new low of the previous Gay, but then ‘revet The bulls may then be forced to reevaluate Ue postions and they may stat taking profits. This ae ‘he reason behind the dounviard gap we see onthe Inst Any of the atte and alo the coke is considerably lower trend reversal has probebly ouzurred, However «confirmation wil tll be required onthe next Sell/Stop Lone Levels “The confiematon levels defined a5 the lat cles, Prices should cross below thi lvel fr confirmation. ‘The stop lore lnval ir defined ae the lat high: Following the bearish sisal if prices go up intead of going ow, ond close or make two consecutive daily AgkS above the ston loss level, while ro Bush patern Is detected then the tp ls ix tiggeredTepe the emrmanen of hm tn in yor lnk ee one ‘Mongih and selabiity and aly BEARISH MATCHING HIGH Definition Thi pater occurs ine two white ays appear nah equel closes an uptend. It ndentes@ top har been reached, even thaugh the new high was tested and there nas no follow dveunh, whichis indicative of @ good 1 The markt is charscenze by = preveilng uptand 2. whe boy observed on the fst day- 4. The secant dey follows wn anotner wte eancesick whose closing price is exactly eavel tothe closing Price of te Ret day Pattern Requirements and Flexibility ‘The Bullsh Matching High consists of two white candlesticks, The length of the fret candlestick should be normal o lng. Bath carclesscks should close ot te some eve trader's The market hos been higher as evidences by another strong whte day. The nest day opens lower and trade sl wey, ane then f closes a the seme price. This x indieatve of short term resistance nd wil emuse much Concern wit the ull. Tre psvenslogy af the market isnot necessoniy wth the action Behn the cy tacing but rth the fo! thet both days core athe sare evel Sell/Stop Lows Levels ‘The confirmation levels define as the midpoint ofthe rat white body. Prices should cons below this level for ‘ha stp lose levis defined 20 the higher ofthe Ince te hich. Following ths bearish signal if press go UP pattern ie detected, than the coo les is wiagered.TES./SBoun Sho patterns etongih Sed volsoney Sed help BEARISH MEETING LINE Definition “This pltern occurs ducing an uptrend. The fat day's white candlestick sfllowed by black candlestick that copes sharly higher and closes atthe same level as the ovor season's dose. 1 is simiar tothe Dark Cloud ‘loses below the midpoint cf the first day's body, while the second day the Bearsh Meeting Line closes the Bearish Meeting Line should aize be respected. a 1. The market i characterized by a prevaling uptrend. 2. On the frst day 9 whe candies ie served. 2, Thom, eave o bled candlestick on the encod 4: The closing prices are the some or almost te seme on bon days. Pattern Requirements and Flexibilty ‘he Bearish Meeting Line consists of two candlesticks, Art a white condstick then 9 black candlestick, both not short. The dosing prices of bath days shoul be te same or very close Trader's Behavior ‘The occurrence of this plter relate alert between buls and bear The market iin an uptrend wher 2 srong white candlestick is formed, wich furtier supports the trend. The next doy opens sharsy higher Ceurng the bulls to fel mare confident. Then the bears start counerallack pushing prices down en leading to a loss equalte (or vary dose) the previous cose, The uprand is now breaches, Sell/stop Loss Levels “Te confematon level ie defined asthe last ose. Prices should ease belo his level for confirmation. ‘he stop loss level is defined as th lat high Fllowing the bearish signal, if prices 20 up intead of acing dun, ona cinae oF make two consecutive daly highs sve the stop loa lave, whle no bullan patern fe detected, thn the scp losis rear‘So Sot ie petns seenth a veto or hes BEARISH ONE BLACK CROW Definition ‘This pater sppenrs in on uptrend and consists of a white candlestick and a binck candlestok in which the the Bearan Haram pater. The only aferonce se thatthe sacone day class lower, which stope the enguing of the lack body bythe praceing mi boty 1 The markt is characterized by = prevaing uptend 2. A hts body is observed onthe fst day. the fist days open. Pattern Requirements and Flexibility “The Bearien One Bie Crow consists of = white candi flowed by a black candlestick. The length ofboth blow the opening sie of the frst day. ‘Trader's Behavior An uptrend ie in ogress and the strong white candlestick soon onthe first ay increases te bllohness nat = ‘irendy preset, As the sccand day epene lower than the clo, the bulla are alarmed. Price fal othe pot, where the cloesdrooe Below exe sravieus day's cpen. the uptrend ip damsged. if pris keep on fling onthe fellouing says,» mayor rears the trond sakes place ‘Sell/Stop Lose Levele “The op loss levels dated x the Inet hgh Flowing the Searah sgn, f prces go up insted ef going down, and close or make two eansecutive daly higho above the stp los level, while no bulishpatarn ic detecos, ene stop loss tggeresSelanne te te BEARISH SHOOTING STAR “This patem consise of a white body flowed by an inverted Hammer that ie caracteraed by 2 long upper tnadew and 2 emai body. 1 © simlar in shape to the Bullzh Inverted Harmer patorn but unis it the ‘Shooting Star appease nan uptrend end sofale« beench reversal 4. The marke is choratarized by » prevailing uptrend 2. Tha fat day of the pater is a white candlestick 2. Onthe second dey, o small bay atthe loner end ofthe trang range is observed. Calor of ths bois not 5. Theres (atmest) no loner stacow. Pattern Requirements and Flexibility “The body ofthe Inverted Mare should be small. The upper shadow must be atleast tice as long as the body but rot shorter than an average candlestick length. It is desired that there 1s no oF a very tiny lower shadow. The to af the Inverted Hammers body ahould be higher then the preceding candlestick’: Body. le’s Behavior “The patern occurs in bush backstound and the white candlestick thet apoesrs on the it day futher suppers the bulishness: Gn he second sy, uhicn on inverted Hammer is seen, market opens ator near 4s loa: Then prices change divecton and eae « rely. However the bul do et sucued in sustaining the rally ‘hrng the eet ofthe cay and prices nay sees ether ator rear the iw of he cay. Cems, thie wl emu Sell/Stop Lows Levels fr confrmation “The top loos lave i defined the lac high, Following the beavsh sana, ocess go uo instead of going down, and cose or make two consecutive dally highs above the step less level, wie no bulish pater is ddetacted, than the soo loss is triggered.Tichonas in Be content _o other ose mkt oleae BEARISH SQUEEZE ALERT Definition This ic «three-day beach reversal paler vac developed because of the Iresuent event where prises can break tothe downside olening ths patter, esacily fhe pattem ie preceded bya strong upside mov 1. The market is characterized by 9 arovaling uptrend. 2. Ahte canclatck appears on te fret 5. Tho secand and thrd dave each have lower highs and higher lows than the previous day. The ear isnot 4: The izes of the bodios ofthe three dave de not mat Pattern Requirements and Flexibility ‘The fet candlestick shouldbe 2 white candlestick. The ether two candlestick ean be of any elor and lanath but they shoud have loner highs rd higher lowes consecit vel Trader's Behavior Wal immsotant but the Beni Squoeze Alerts thal the uptend has stalled and some pneu or sab hae finally rive, Sell/stop Loss Levels ‘The confirmation level i defined asthe body botom ofthe last day. Price chould erase below tis level for bape Ste ir ens i er fin be igh Pl ni l ' icm gus instead of going down, and dose or make two consecutive dally highs above the stop lass level, whe no bulishBeteee ole come Oy ie ee heme BEARISH STOP LOSS Definition This nok = standard candlestick pattern is simply the stop lass compliment ofall the eavfrmed bullish pattem The cordiions forthe ectivason of the Beersh atop Inez are two convective lowe or @ doce below the stp loss level of» recent confmes bulls potter, 1. Abulisn potem is detected, ands eanfrmaton and sto oss levels are extn, 2. The paler, toe, is confirmed and e BUY signal ix iexued- 83, Prices ether cose once elow the stop less level or teat las below the stop loss level in two consecutive 4 The Benrsh tp osnis toggeres Pattern Requirements and Flexibility {Al bullish cnclesticks are scsompanied by a spec stop loss level which becomes active when the pattern is Confirmed. A bullah confirmation consequertiy may lead to bullsh BUY signal Follwng the BUY, prices 99 {om instene of going up, ard clone or make two conseciive dy lows below the snp Ions level, ie no confirmed bulleh eatem stars acting 22 the confirmation level ofa bearah pattem Root The eysem then ‘he bearch confirmation ofthe triggered stop oes. ‘Teailer's Behavior Inthe chaotic environment ofthe stock market tig hard t enim that al bul bet wil be succesful. Moet Dareme may lead to flea trades, coms of which are bull ape. This is exactly where the op lose comes inca fhe pature It serves ase afer vnve for te bulls cuting the potently devacteng losses #2 9 minimum level According tothe tastes, tha vades based on the Search tcp los confirmations ae as successful ac the other candlestick patem bases signals I confirmed, they should never be avoid. Set/stop Loss Levels ‘The confirmation level is defines as the stop loss level ofthe recentiy confirmed ullsh condestick patter Prices should oss blow this evel fo he confirmation ofthe Bearish stop lace.BEARISH THREE BLACK CROWS Definition ‘This patem indicates 2 song reversal inthe markt, [tf charactersed by three norms er log condeicks aecementing daurwerds. The opening of each dey iz sight higher then previous close and pre=s propresively cose et ower evele. Th sircase like Behavior signa the reversal of te trend Recognition Crterta 1. The market is characterized by 2 provaing ustrand 3 Each candlestick opens within the body ofthe brevius day 4. Cansiesticks progressively cise at new lows, below the preceding day. Pattern Requirements and Flexibility ‘The Thee Blnck Crows consts of three consecstive nomal or Jong black candestcks. The fst two ‘andlsticks must open within the range of the preceding candlestick and dose lower “eaters Behavior ‘The pattern appears ina content where the market has stayed ata high pice fr too long. The market il 0!ng up and ts now approaching 2 top er has airsady reached the top, Than we sea 2 disive commward Sitemal ccprerenied by the first Bleck candlestick. Erosion of pres cones in the next two days fharacarizes by lower close. full 2re now forced to take arf. Sell/stop Loss Levels “The confirmation level ie defined a the lac clos, Prices should eves below this lvel fr confirmation ‘The stop loss level is defined as the las high. Folloning the bearsh signal if orces go up instead of aoina oan, and close of mae fea eanzecutve daly highs shove the st las evel, whe no Dull patern feted, then De stop loss is UigeredSisrhe ie ee below fir stk marae er a0 Sas Ste Hepa arongh ad isly So hele BEARISH THREE GAP UPS ‘his is 2 four aay benrish reversal patem. it consis of three conseitve days exch gepring higher an the pen. After Three Gap Ups the market becomes extremely overbought and ready forthe reversal of the currereuptrené ‘Recognition Crterta 1. The fist day canbe of any eso 2. The second day aso can be of any eno so ong 2s is body 86S up away from the frst éay’s boy 5: The lat two days are white and their bodies must gap up fram the bodies af he orar days. Pattern Requirements and Flex iy ‘The fist two days ofthe Bearish Three Gap Uos can be of any exor but the last two dave should be white ‘There must bo uncide body gare between the candles, Trader's Behavior ‘The market i overbought wich trae gaps up in arew andi tim for raft taking ‘Soll/stop Loss Levels “The confirmation le cares ie defined as the midpcint of th last white bed vices should coe below this level for instead of going down, and cose or meke two consecutive daly highs above the stop loss level, while no bullish otters = detecaa, shen the aap Ines is eggeres.BEARISH THREE INSIDE DOWN Definition “his is a confirmed Bearish Harari pater. The ist two lines are exactly the some asthe Bearish Haromi, and the thie day represents beara confreton thre shee Sy joclaaap 2. We e20a Bearish Haram (or 2 Haram Cros) pattarn inthe fret two 4376. Pattern Requirement ond Flexibility 1 Besrish Haram (or Haram Cross) pati should be identified! with all previously act rules. The thd doy rmuctbe a biage day win 3 lowar dose. Trader's Behavior Tatttac in the contest of cihr "icsk mniiete plaese Tha Gecond day of the Bearish Three Inside Oown already signals trend raversal since the second day's ema SesTicic ale Bice siete ecemeet tale 202 poy (or Oo) snows that ulin powers amnahing, The thre dy cans th Foc bur stl = forbear So"Sisrt tha neers Soeogih and vclobiny and hit is required fr a bearish reversal. Pao ieen, Sell/stop Loss Levels “a confirmation lavel ie defined 2 the lactose. Price chouls eros belo the level for confirmation. “The top loos lave is defined the lac hich. Falowing the beavoh sana, prices go up instead of going own, and cose or make two consecutive Sey highs above the stop loss level, while ro buh pattem detected, than the stop loss is tiagered,com te puormance fe pam tn, your ce Sous the peice’ strong and iakebly ted help BEARISH THREE OUTSIDE DOWN “This ga confimed Bearish Enguling pate. The fet two lines ave exact the same ae the Bearish Enguing pattorn and the third day represan: te confrmation. 4 The market is characorized by 2 preven uotrond 2: Wie se » Bearish Engufing pattern in the fr wo ays 5. Then, we sae blade candlestick onthe tid day witha lower coos than the second day. Pattern Requirements and Flesbilty 2 Bearish engulfing pattern should be ideried with al previously set rules. The tid day should be 2 back ‘Trader's Behavior “he ratte days of te Seariah Tras Outside Down is simply 9 Georan EngultingFatern, and ne third day confinms that the uprend is damaged 2: suggested by this patie, sios Cs = Baek candlestick closing with new low forthe est three days. However fer 3 besrsh reversal, there i sil 9 need fora futher coniemation Sell/stop Loss Levels ‘he confirmation levels defines ns the last lose. Pres should eros sl ths level for confrmaton “inset los velit defined ae the Int high. Following te bearien signal prises 92 un instead of coing otectad, than the ep lose is wiggerecTES./SBott Sho patterns sttongih snd volsoney Sed help BEARISH TRI STAR Definition “The pattern fea saquenos of three Doj. The occurrence of thi pltern is extramely rare, eo whan occurs t should noe bs ignores 2. The maristis characrized by a prevaing uptrend. 5: The secand day gape above the fist and the third, Pattern Requirements and Flexibility ‘he Bearish Throe Star consisto of three consecutive Dal in ich the second Dei gape above the two ether Djs sficint tha the ga is body gap. Theres no need for gap beween shad. “Trader's Behavior In the case of @ Bearish Te Star we have @ market, hich i in an uptrend for lang time. However, the weakening vend is probably indicated by the bodies hat are becoming smaliet The fst do ic 2 mata of onccre The: secerel Do coat fiche thal mmr ain Ha Sireton cy the afl dt aretha Ns upheaval tow ecient emvern ceor Sell/stop Loas Levels “The confirmation level ie defined a the act ose. Prices should roar below this level fer confirmation ee eee ee ee instead of going dow, ana lose or aie two coneective day hghe above the ern one evel whe no BlanBEARISH TWO CROWS ‘This patem ie a made up of tree candlesticks. The Mack candlestics ofthe cond and third day represert ‘he two crows that parsed onthe fret wns candlstcs Recognition Criteria 1. The market is characterized by 9 crovaling uptrend. 2. A strong white candlestick appears onthe fist day. 3: The eacond day ie 3 blac candace hat gaos up- 4. On the Inst day anather black candlestick appears that opens inside the body ofthe second day and then loss inside the body of te fr day. Pattern Requirements and Flexibility ‘The arith Two Grows should tant wih a trang white body. A black body that forms an upsida body gap with theft canestce Flows. The ted dey i anater black body thet opens or acu tne close of he eecond ay. The thie day should cise within the body tints of he frst dav. ‘Trader's Behavior ‘uptrend has been in place, and the strong white candlestick adds tothe bushes that is already present. bulls are not alarmed by this day, because evan though a black body aposats, pices fal to dose below the ‘throughout the day and closes well within the body of the first day. The third day's action fil the gap of the “second chy, and shows tot te blshness is eroding ‘Sell/stop Loss Levels, ‘The confrmaton level is defined as the ns else. Prices shout cross below his level for confirmation. ‘The stop loss lev! is defined as the Inst high Following the bearish signal, if prices 20 up instead oF going down, and close or make two consecibve daiy highs above the slop las level, whe no bulsh patlern ‘etecrd, then the top loes is triggered.BEARISH UNIQUE THREE MOUNTAIN TOP Definition candace atta that somauhat lke lke the Bearish Evaring Sta fe eppear in an unten The Frit cays white eandleseck engufs the flloning small whe body, wich choractersticaly hos » long upper shadow. The pattern is completed by 2 ema back body, which dases above the close ofthe second day. 1. The markt is charactriad by 2 orovaing uptrend. 2 suite candesck is observed onthe Firs dy 5. The second day is 2 white body that opens omar rades at 2 new high, and then doses near the om. |The tire doy ia shor bac day above the second dy Pattorn Requirements and Flexibility ‘The Bearish Unique Three Mourtsin Top stars wth 9 strong white candlestick, and a shor white candestice that opens lower flows i. The sacond day trades at 2 naw high, causing long Upper shadow that reaches higher than she previous days high. The bady ofthis candlstice i engulf by the Fst ay. The fal ana tha ofthe palern iw hort back body that ic shove the second day's body ‘The market is cursing and it produces @ white day. The falling dey unexpectedly opens lower however the bull show ther evanats and cause naw highe to bs reached during tte Gay. Ths day osgo rear fe opan, lending to the frretion of short white candlestice. The strength ofthe bulls i in question ond ines rovab in te market. On tha next day, a small back body aposare and encure thatthe bulls ae losing rent ‘Sel/stop Loss Levels instead of going down, 2nd dose or make two consecutive dally highs above the sp loss level, weno bulls patter sdeteces, then the stop los is nigger.fica abort tre poles strength and hoy and hee BEARISH UPSIDE GAP TWO CROWS ‘his ie a trae. candlestick bearchravarcal pattem. The gep between the Back body of the eacond day andthe 4 the market is characsrized by a prevainguptran. 5. The second day ipa shor back cancleetck that gape up. 2 one Inst any ancther back cancestice appears tt apens at or above the oxen, and then cses below the coco of tha arevcus day, but til above the dace ofthe fiat day Pattern Requirements and Flexibility “ine Upcide Gap Two Crows should star with 2 nocmal or long white body. A chor blac bedy with an uneida body gap follows. The tis day is another back body that engulfs the second day, The third day may open at oc above the open ofthe escond day. The ti day should close above the body Finite ofthe Fit day, leaving the aap crestes Between the first nd the second days sil uflles Trader's Behavior ‘An uptrend has been in pace, nd the white candlestick ats to the bullshness tht is niready present: The folowina day ooens higher with a 920 ub. Pics fall alte bi, and a chart black candlestick is formed. The bulls are not alarmed by tis day, Because even though lace body appears prices fal to dese below the ose ofthe previous day. The Bird day opens ator above the open ofthe second day, but it falls Uwoughout ‘the day and ccsee elem the previeue dose. The two conceive Dick bodies show tat the trength of the upveend has been questioned: Sell/Stop Lows Levels “The confirmation level is defined athe last dose, Prices should cross below tis level or confimation, “The sop loss love defined 2 the last high. Following the baavsh signal, if pcces go up instead f going oun, and cose or make two concccutva dally hans above the stop lose level, wile no bulisn pater is deteced then the ap Ines tnggered.