Bearish reversal is a reversal of the direction of stock prices, which initially increased but then the trend decreased. The pattern is the opposite of the bullish reversal described in the previous article. Bearish reversal means that the stock price initially increased, but the stock has the opportunity to fall again.

This means that there is an opportunity to experience a reversal from an uptrend to a downtrend. There are several characteristics that indicate a stock is experiencing a bearish reversal, namely: Preceded by an increase in stock prices or experiencing an uptrend, a bearish confirmation pattern appears.

Some bearish reversal patterns can be analyzed from a number of candlestick patterns or chart patterns as happens when a bullish reversal. Some bearish reversal candlestick patterns are as follows:

BEARISH HARAMI

Another name for Bearish Pregnant.

2 candles format.

Started by an uptrend.

The first candle is green.

The second candle is red.

The second body candle is inside the first body candle.

 

BEARISH HARAMI CROSS

Another name for Bearish Pregnant Cross.

2 candles format.

Started by an uptrend.

The first candle is green.

The second candle is in the form of a doji.

The doji is inside the body of the first candle.

The difference with Bearish Pregnant only lies in the shape of the second candle, which is in the form of a doji in this formation.

 

BEARISH HOMING PIGEON

2 candles format.

Started by an uptrend.

The first candle is green.

The second candle is also green.

The second body candle is inside the first body candle.

The difference with Bearish Pregnant only lies in the "color" of the second candle which is green in this formation.

 

MATCHING HIGH

2 candles format.

Started by an uptrend.

The first candle is green.

The second candle is also green.

Very similar to Bearish Homing Pigeon.

The difference lies only in the closing price of the candle

the second is the same as the closing price of the first candle in this Matching High pattern.

 

BEARISH ENGULFING

2 candles format.

Started by an uptrend.

The first candle is green.

The second candle is red.

The first body candle is inside the second body candle.

 

DARK CLOUD COVER

2 candles format.

Started by an uptrend.

The first candle is green.

The second candle is red.

The opening price of the second candle is above the closing price of the first candle.

But then the closing price of the second candle passed (below) the middle of the body of the first candle.

 

TWEEZER TOP

2 candles format.

Started by an uptrend.

The first candle is green.

The second candle is red.

What is noticed in this pattern is the highest price of the first candle and the highest price of the same second candle.