Bearish Continuation Candlestick Patterns
Bearish Japanese Candlestick continuation patterns are displayed below from strongest to weakest. Continuations tend to resolve in the same direction as the prevailing trend:
- Bullish continuations are likely to resolve in an up-trend; and
- Bearish continuations are likely to resolve in a down-trend.
Candlestick pattern strength is described as either strong, reliable, or weak.
- Strong candlestick patterns are at least 3 times as likely to resolve in the indicated direction.
- Reliable patterns at least 2 times as likely.
- Weak patterns are (only) at least 1.5 times as likely to resolve in the indicated direction, meaning that 2 out of 5 patterns are likely to fail.
Concealing Baby Swallow
Strong bearish continuation in a downtrend
This rare pattern consists four black candles. Two consecutive tall black candles with no shadows gap down to a third tall black candle with a tall upper shadow (that overlaps the preceding body) and no lower shadow. This is followed by a fourth black candle which completely engulfs the previous candle (including the shadow).
Falling Three Methods
Reliable bearish continuation in a downtrend
The first tall, black candle is followed by three shorter candles that are bullish in direction and usually unfilled. Opens and closes (bodies) of the middle three candles usually occur within the body of the first candle. A final fifth candle is tall, black (filled), and closes below the body of the starting black candle.
Separating Lines
Reliable bearish continuation in a downtrend
A tall white candle in an downtrend followed by a tall black candle that opens near the bottom of the first candle body.
Doji Star
Reliable bearish continuation in a downtrend
Tall black candle gaps down to a short Doji candle, with no overlap between the bodies of the two candles.
Stick Sandwich
Weak bearish continuation in a downtrend
Tall black candle with no tail followed by an overlapping white candle with no (upper or lower) shadow. The third, tall black candle has no tail (lower shadow) and engulfs the body of the second candle.
Inverted Hammer
Weak bearish continuation in a downtrend
A tall black candle gaps down to a second candlestick with a short body, filled or unfilled, near the bottom of the trading range. The two bodies should not overlap and the second candle has a tall upper shadow — at least twice as long as the body.
Matching Low
Weak bearish continuation in a downtrend
Two consecutive black candlesticks where the second candle has the same low as the first and both candles have no lower shadows (tails) below the body.
Side by Side White Lines
Weak bearish continuation in a downtrend
A tall black candle gaps down to a a shorter white candle. A third, white candle has a similar open to the second and below the body of the first candle.
Unique Three Rivers
Weak bearish continuation in a downtrend
A tall black candle is followed by a black hammer with a lower low but the open and close (body) occurs within the body of the first candle. The hammer is followed by a short white candle with a body below the close of the second candle.