Trading with Bearish Three-Stick Patterns
In This Chapter
Predicting a trend reversal with bearish three-stick patterns
Working with bearish three-stick patterns that signal a downtrend continuation
In this chapter, I focus on the biggest bearish formations included in this book: the three-stick bearish candlestick patterns. Throughout the next few pages I cover some of the most common bearish three-stick patterns that pop up on your charts.
If you flip back to Chapter 9, you can read about a variety of bullish three-stick patterns that can tell you when a downtrend is about to shift upward, as well as a few of those patterns that reveal when a downtrend continues. This chapter features the bearish counterparts of those patterns, and they can reveal when an uptrend is about to fall apart and head downward or when a downtrend is likely to continue. Use these patterns when you’re looking to put on a short position or as sell signals if you’ve already established a long position.