Bearish Patterns
Bearish Downside Gap Three Methods
Bearish Falling 3 Methods
1. 1st day is a long black
day.
2. Three small body
candlesticks follow the 1st
day. Each trends upward and
closes within the range of the 1st day.
3. The last day is a long black day and closes
below the 1st day's close.
This is a formation which shows the market taking a
breather before continuing it's downtrend. Notice
that a new high is not seen during the 4 remaining
days of this formation. This gives little confidence
to the bulls, making way for the short sellers.
Bearish Breakaway
1. 1st day is a long white
day.
2. 2nd day is a white day
whose body gaps up.
3. 3rd & 4th days close
higher each day.
4. 5th day is a long black
day that closes inside the gap created by the 1st and
2nd days.
The up trend is accelerated by a gap up. The next
few days trend up, however start to run out of
steam. The last day of the formation shows a
breakdown and close below the previous 3 days,
however the gap created on the 1st day remains
unfilled. Since the gap is not filled and the trend is
obviously deteriorating, this implies the reversal
signal.
Bearish Three Line Strike
1. 1st three days make up the
Three Black Crows formation.
2. The last day is a white day
that opens below the 3rd day and
closes above the 1st day's open.
The 4th day is a powerful move
up which could represent a lot of short covering.
Since the reversal has already played out in a matter
of one day, the risk is now higher for those who
wish to bet on a reversal. The downtrend should
resume.
1. 1st two day are long
black days with a gap
between them.
2. 3rd day is a white day
that fills the gap of the 1st
two days.
The gap down on the 2nd day gets filled by the 3rd
day. More investigation of the previous weeks is
recommended in order to see if this is the first gap.
If so, then this pattern is probably displaying short
covering to 'close the gap' created and the bearish
trend should continue.
Bearish Downside Tasuki Gap
1. 1st two days are black days
with a down gap between the 1st
and 2nd day.
2. 3rd day is a white day which
opens within the body of the 2nd
day and closes within the gap
between the 1st and 2nd days.
3. 3rd day should not fully close
the gap.
The gap down on the 2nd day does not get filled by
the 3rd day. This suggests that the downtrend will
continue.
Bearish Side-by-Side White Lines
1. 1st day is a black day.
2. 2nd day is a white day which
gaps below the 1st day's open.
3. 3rd day is a white day about the
same size as the 2nd day, opening
at about the same price.
The 2nd and 3rd days are a failed
attempt to rally. Shorts are basically taking profit
here. The downtrend remains intact.
Bearish Abandoned Baby
1. 1st day is a white day.
2. 2nd day is a doji whose shadows
gaps above the 1st day's close.
3. 3rd day is a black day that gaps
down and contains no overlapping
shadows.
The gap up on the second day encourages the bulls,
however the close on the second day is nearly the
same as the open on the second day. This could be a
sign of temporary profit taking by the longs,
however the third day reveals that the more likely
scenario is indecision on the second day. Watch for
additional downside price action in the next few
days.
Bearish Advance Block
1. Three consecutive white days
with higher closes each day.
2. Each day opens within the
previous body.
3. Each day displays
deterioration of the upward move
as shown with the long upper shadows on the 2nd
and 3rd days.
This formation is similar to the Bullish Three White
Soldiers formation. However, the Bearish Advance
Block chart alerts traders to the weakness of the
upside price action since the close of the second and
third days are significantly less than their highs.
Bearish Deliberation
1. Three consecutive up days (1st
two long days) with higher opens
and closes each day.
2. 3rd day gaps above the 2nd
day's close. Some texts show the
3rd day as closing near the 2nd
day. HotCandlestick.com diverges
from this philosophy since any
small body candlestick on the 3rd
day shows weakness. Some might argue that the
greater the gap above the 2nd day, the more likely a
short term pullback is in order. Granted, a large gap
may signal a continuation of the uptrend, but the
opportunity to capitalize on a profit for an
immediate pullback prior to the return of the
uptrend should not be ignored. Stops should be in
place when trading in order to minimize potential
losses.
3. 3rd day is usually a spinning top or star (small
body).
This formation is very similar to the Bearish
Advance Block. The key difference is that all of the
weakness shows up on the 3rd day. The first two
days have powerful upward moves. The quick
change in sentiment opens the window for
daytraders to initiate shorts or capture profits.
Bearish Evening Doji Star
1. 1st day is a long white day.
2. 2nd day is a doji which gaps
above the 1st day's close.
3. 3rd day is a black day.
The bearishness of the doji star
created on the 1st two days is confirmed with the
3rd day. If the penetration of the 3rd day is more
than 50 percent, then this formation has a much
better chance to succeed for the trader.
Bearish Evening Star
1. 1st day is a long white day.
2. 2nd day gaps above the 1st
day's close.
3. 3rd day is a long black day.
The 2nd day gaps higher, but
trades in a small range. The
bearishness of this indecision is confirmed by the
lower close of the 3rd day. Look for lower prices.
Bearish Identical Three Crows
1. Three consecutive long black
days with lower closes each day.
2. Each day opens at the
previous day's close.
This formation could represent
panic selling. Each closing price
establishes the opening price for
the next trading day. Additional
downside price action should follow.
Bearish Three Black Crows
Pervasive profit taking takes its toll
on those who remain long. This
induces a snowball selling effect in
the coming days.
 Bearish Three Inside Down
1. 1st two days form a bearish
harami.
2. 3rd day closes lower than the 2nd day.
This is the confirmation signal of the Bearish
Harami formation.
Bearish Three Outside Down
1. Bearish Engulfing formation
occurs making up the 1st two days.
2. The 3rd day closes lower than the 2nd day.
This is the confirmation of the Engulfing formation.
Bearish Tri Star
1. All three days are doji days.
2. 2nd day gaps above the 1st and
3rd days.
This formation is rare, so always be
suspect of the data. This pattern is not reliable for
stocks with low volume. The huge amount of
indecision created by these three dojis must not be
ignored by traders. This level of indecision strongly
suggests that the trend is about to change.
Bearish Two Crows
The gap created on the 2nd day gets
filled by the 3rd day. This quick pull
back does not bode well for the
bulls. This price action indicates a
short term top.
Bearish Upside Gap Two Crows
1. 1st day is a long white day.
2. 2nd day gaps up and is black.
3. 3rd day is black and opens
inside the body of the 2nd day, then
closes inside the body of the 1st
day.
The gap created on the 2nd day has
already started to be tested by the 3rd day. Two
consecutive lower closes places a damper on the
bullishness. Look for lower prices and the gap to be
filled soon.
Bearish In Neck
1. 1st day is a long black day.
2. 2nd day is a white day which opens
below the low of the 1st day.
3. 2nd day closes barely into the body
of the 1st day.
Identical to the Bearish On Neck
formation, except the downtrend may not continue
as quickly.
Bearish On Neck
1. 1st day is a long black day.
2. 2nd day is a white day which
opens below and closes at the low of
the 1st day.
The 2nd day is unable to close above
the 1st day's low. This should bring
some discomfort to the longs that entered on the
2nd day. The downtrend should continue shortly.
Bearish Separating Lines
1. 1st day is a long white day.
2. 2nd day is a black day that opens at
the opening price of the 1st day.
The long white day produces skepticism
in the bear market. The next day the long black day
that forms eases concerns by the shorts. The
downtrend should resume.
Bearish Thrusting
1. 1st day is a black day.
2. 2nd day is a white day which
opens well below the low of the 1st
day.
3. 2nd day closes well into the body
of the 1st day, but below the midpoint.
This formation underscores the lack of buyers. Even
though the 2nd day is an up day, it's still unable to
close above the midpoint of the previous day's
body. This suggests that the downtrend will
continue.
Bearish Dark Cloud Cover
1. 1st day is a long white day.
 2. 2nd day is a black day which opens above the
1st day's high.
3. 2nd day closes within the 1st day, but below
the midpoint.
A long white candlestick is formed on the 1st day
and a gap up is created on the 2nd day. This is
encouraging to the bulls. However, the 2nd day
closes below the midpoint of the 1st day. Longs
quickly question their strategy.
Bearish Doji Star
1. 1st day is a long white day.
2. 2nd day is a doji day that gaps
above the 1st day.
3. The doji shadows shouldn't be
excessively long.
The uptrend is in full force with a strong 1st day.
All confidence built up by the bulls from the 1st day
is destroyed when the 2nd day's gap up closes near
its open. Profit takers will quickly appear if the next
day opens lower.
Bearish Engulfing
1. The color of the 1st day's body
reflects the trend, however could be a
doji.
2. The 2nd day's real body engulfs
the 1st day's body.
If not much volume occurs on the 1st day of the
Bearish Engulfing formation compared to the 2nd
day, then this increases the strength of the pattern.
The 2nd day opens above the close of the 1st day,
however quickly sells off to finally close below the
open of the 1st day. This damages the spirits of the
longs and brings into question the bull trend which
prompts additional selling in the coming days.
Bearish Harami
1. The 1st day is a long white day.
2. The 2nd day is a short day whose
body is engulfed by the 1st day's body.
A long 1st day with high volume in the
existing uptrend brings complacency to the bulls.
The next day trades in a small range within the
previous day's real body. Light volume on the 2nd
day should give rise to concern by the bulls of an
impending change of trend. Look for lower prices
over the coming days, especially if the next day
provides confirmation of a trend change by closing
lower.
Bearish Harami Cross
1. The 1st day is a long white day.
2. The 2nd day is a doji day that is
engulfed by the 1st day's body.
The 2nd day's price range does not
pierce the previous day's range and closes about
where it opened. Volume on the 2nd day is low
which indicates that traders are lacking enough
information to decide whether to go long or short.
Bearish Kicking
1. 1st day is a white marubozu.
2. 2nd day is a black marubozu and gaps
open below the 1st day's open.
The gap created by the 2nd day becomes a
resistance area. Expect lower prices and for
the gap to be tested before breaking back to
the upside.
Bearish Meeting Lines
1. 1st day is a long white day.
2. 2nd day is a long black day and
closes at the 1st day's close.
An up day followed by a down day
that closes at the previous day's close
gets traders to bet on a reversal. It's probably a good
idea to wait for confirmation of the downtrend. This
would be a lower close the next day.
Bearish Shooting Star
1. Price gap open to the upside.
 2. Small real body formed near the bottom of the
price range.
3. The upper shadow at least three times as long
as the body.
4. The lower shadow is small or nonexistent.
The long upper shadow and small real body at the
bottom of the trading range are cause for concern by
the bulls. They wonder if this is the end of the
uptrend and take measures to protect their gains.
2. 2nd day consists of a short body candle that has
a high equal to the prior day's high.
3. The color of each candle body is not considered
in the matching of this pattern.
The price action has trended upward then 2
consecutive days of equal highs signal resistance.
This could signal a short term top is forming.

Bearish Belt Hold

1. Long black day where the open is

equal to the high.
2. No upper shadow.

A significant gap up occurs. The

remaining price action for the day occurs to the
downside. This triggers new short positions to be
taken. Concern over this price action re-enforces the
selling.

Bearish Hanging Man

1. Small real body at the upper trading

range.
2. Color of the body is not important.
3. Long lower shadow at least twice the length of
the body.
4. Little or no upper shadow.
5. Previous trend should be bullish.

As with any single candlestick, confirmation is

required. The Hanging Man formation shows the
price goes much lower than the open then closes
near the opening price. This could mean that many
longs have positions that they are attempting to sell.
Ideally, a black real body Hanging Man with a
lower open the following day could be a bearish
signal for the days ahead.

Bearish Tweezer Top

1. 1st day consists of a long body candle.