This article discusses bearish candles and how they can be warning signals about market performance.
To find out more Chart Pattern Basicsall Continuous Pattern GuideLoss role of triangle or an article about it Cup and Shoulder Trading. We also Introduction to Japanese Candles, optimistic candle and neutral candles.
bearish candle
hanged man
The Hanging Man is a bearish candlestick pattern that occurs during an uptrend, indicating market weakness and a possible reversal, especially if confirmed by subsequent price action.
Indicators of the Hanged Man Pattern
- Small red candle.
- Shadows of various lengths. The lower shadow is longer and the upper shadow is absent or absent.
Interpretation of the Hanged Man Pattern
The small body of the candle reflects the limited trading range between the open and close prices, indicating that there was little or no price movement between the open and close prices during the session. A long downward shadow on the candle’s wick suggests that sellers have pushed the price sharply lower during the trading session to test or break an important support level, while the absence of a significant upper shadow suggests that buyers have attempted to push the price higher. Unable to maintain control, a bearish reversal signal occurred.
The Hanged Man Pattern Directions
marco temporary
On long-term charts (e.g. daily or weekly), hangers may be more important than on short-term charts (e.g. intraday).
shooting star
The Shooting Star candle pattern occurs during an uptrend and indicates a possible reversal with a small body at the bottom and a long upper wick. This indicates selling pressure and market weakness.
Indicator of Meteor Patterns
- A candle with a small body.
- The candle is red, so the opening price is lower than the closing price.
- The upper wick is noticeably longer than the actual body, approximately 2 to 3 times longer.
- The bottom wick is either very short or not present at all.
- You have to consider the situation. The shooting star pattern indicates a bearish reversal when discovered after a long-term upward trend.
Interpretation of falling star patterns
This pattern comes from its resemblance to a star with an upward-pointing tail. The small body near the base of the candle is followed by a long upper wick that extends over the actual body of the pattern. The body reflects the price range between the opening and closing prices of a particular trading session, while the upper wick represents the highest price reached during that session.
The long top wick of a shooting star indicates that buyers attempted to push the price higher during the session, but were ultimately unsuccessful, and that sellers may lower the price again. This rejection of price increases is a bearish indicator, a sign that bullish momentum has weakened and a reversal is possible.
Direction of the shooting star pattern
Shooting star candle patterns often move up and down on price charts. In other words, it indicates a possible reversal from an uptrend to a downtrend.
volume analysis
An increase in trading volume on a shooting star day can serve as validation. This means that as trading volume increases, the number of people supporting the reversal increases. As volume decreases, reliability may decrease due to lack of attention to patterns.
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