Bearish Reversal Candlestick Patterns

Bearish Japanese Candlestick reversal patterns are displayed below from strongest to weakest. Reversals are patterns that tend to resolve in the opposite direction to the prevailing trend, with bearish:

• Bullish reversals are likely to resolve in an up-trend.
• Bearish reversals 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.

Three Black Crows

Strong bearish reversal in an uptrend

Three falling tall red candles, with partial overlap (between the candlestick bodies) and each close near the low.

Identical Three Crows

Strong bearish reversal in an uptrend

Three identical falling red candles with no overlap (between the bodies) and each close near the low.

Evening Star

Strong bearish reversal in an uptrend

Tall green candle followed by a higher small candle, either filled or unfilled, with a gap between the two bodies. Then a gap down leads to a third, tall red candle that closes below mid-point on the body of the first candle.

Three Line Strike

Strong bearish reversal in an uptrend

Three rising green candles, with higher closes, followed by a tall red candle that opens above (or equal to) the preceding close and closes below the bodies of the preceding three candles.

Evening Doji Star

Reliable bearish reversal in an uptrend

Tall green candle gaps up to a higher Doji candle (where the open and close are nearly equal). The shadows may overlap but there should be a gap between the two bodies. Then a gap down to the body of a third, red candle that closes below the mid-point on the body of the first candle.

Three Outside Down

Reliable bearish reversal in an uptrend

Green candle 'engulfed' by a taller red candle that opens above the preceding body and closes below it. A third candle is red and closes below the previous two candles.

Engulfing

Reliable bearish reversal in an uptrend

Green candle followed by a taller red body that opens above the preceding body and closes below it.

Belt Hold

Reliable bearish reversal in an uptrend

Tall red candle where the open gaps up from the previous close but is the high for the day. There is no upper shadow and the close is near the low.

Abandoned Baby

Reliable bearish reversal in an uptrend

A tall green candle followed by a higher Doji candle with a gap between the two bodies. Then a long red candle that opens below the body of the second candle.

Three Inside Down

Weak bearish reversal in an uptrend

A Harami pattern (a tall green candle followed by a smaller red candle where the body is enclosed within the body of the first candle) is followed by a third red candle that closes below the body of the first candle.

Dark Cloud Cover

Weak bearish reversal in an uptrend

A tall green candle followed by a tall red candle that closes below the mid-point on the first candle.

Breakaway

Weak bearish reversal in an uptrend

A tall green candle gaps up to a shorter green candle. This is followed by two short candles, each with a higher close.
The sequence culminates with a tall red fifth candle that closes below the lows (shadows) of the preceding 3 candles, indicating a reversal in market sentiment.

Upside Gap Three Methods

Weak bearish reversal in an uptrend

The Upside Gap Three Methods formation contains three key elements.

It starts with a tall green candle that gaps up to second green candle, with some potential overlap in their shadows. This is followed by a tall red candle that closes decisively within the body of the first green candle.

Shooting Star

Weak bearish reversal in an uptrend

A shooting star is a candlestick pattern that appears during an uptrend, characterized by a short body and a long upper shadow.

The body can be either red or green and is located at the bottom of the trading range. The upper shadow must be at least twice the height of the body and signals resistance.

In a downtrend this candle is called an inverted hammer or gravestone.