Utilizing Bearish Double-Stick Patterns
In This Chapter
Working with bearish double-stick patterns that signal a trend reversal
Predicting the continuation of a downtrend by using bearish double-stick patterns
In Chapter 7, I discuss the nature and usefulness of bullish double-stick patterns, but they aren’t the only double-stick show in town. As with most bullish patterns, bearish two-day counterparts exist, too, and you should know how to recognize and trade them, and that’s what I focus on in this chapter. These patterns work as effective sell signals, and keep in mind that when a sell signal pops up, even if you don’t have a long position on, you can use the opportunity to initiate a successful short position.