Bearish Continuation Candlestick Patterns

Bearish Continuation Candlestick Patterns

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Learn about different bearish continuation candlestick pattern types in this article. These candlestick patterns signify that the market is in a downtrend to continue selling to make more money.

Trading is built on candlestick patterns. Traders need to be able to recognize these patterns and use them for technical analysis. Candlestick patterns are also used by advanced traders to predict the markets.


Bearish continuation candlestick patterns are candlestick patterns that forecast a continued downward trend in the market. If a bearish candlestick pattern develops in an already bearish market, it means that the price will continue to fall.

The pattern warns buyers to avoid the market as it continues to bearish. This pattern also indicates that the sellers remain the dominant market participants and will continue to be so in the future.

How do you identify a bearish continuation candlestick pattern

The trend continuation candlestick patterns and the trend reversal candlestick pattern are completely different. Both patterns are distinguished by their location. Reversal patterns occur at the end and continuation patterns within the trend.

The simplest way to spot a bearish trend in the market is through price action and moving averages. Because it’s the best way to find a bearish trend, I recommend using price action.

Forming lower lows and lower highs

This method is most efficient in identifying a bearish market trend. If the price is making lower lows or higher highs it indicates a bearish tendency. This strategy is called price action and it’s what I recommend to intermediate and advanced traders.

Similar to the image below

lower highs

Use moving averages

The 38-period exponentially moving average can be used to determine the bearish tendency. A price trend that is lower than the 38 EMA is considered bearish. Bullish if price is above 38-period EMA.

To find bearish continuation candlesstick patterns within the bearish trend, this is our job. You must verify the trend.

down trend

Here’s a list of continuation bearish candlestick patterns

Below is a listing of six bearish continuation candlestick patterns.

Three methods for falling

Five candlesticks make up the fall three methods pattern, which is a continuation of the bearish trend. A falling three-methods pattern is made up of three base candlesticks, one large and two small.

falling three methods

The candlestick pattern is formed in a particular sequence. A large bearish candlestick, which shows the dominance by sellers, will first form. Within the same range as the last candlestick, three smaller bullish candlessticks will then form. The formation of these three bullish candlessticks indicates a retracement up. A bearish candlestick could form and engulf the three previous candlesticks. The three-method candlestick pattern demonstrates that the sellers will continue to be dominant over buyers.

You will discover hidden patterns in this small candlestick’s price action by reading it on shorter timeframes.

These rules should be followed. You can find out more by clicking on the Learn More button. You will also find a detailed trading strategy explained there.

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Falling window candlestick

The fall window pattern is a continuation of the bearish trend. It consists two bearish candlesticks, with one gap. This gap is due to large open sell orders.

falling window candlestick

The price tends to compensate for the gap area. This is an innate phenomenon. That’s why the price will retrace to the imbalance or gap area. After filling in the gap, price will resume its bearish trend.

Two big bearish candlesticks along with a gap indicate the large number of buyers in the market. The weakness of buyers is evident in the market’s retracement price to the gap zone. This indicates a continuation of the bearish market trend.

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The neck candlestick design

A bearish candlestick pattern is located on the neck. It consists of two different candlestick patterns. The first candlestick is a bearish pattern and the second a bullish one. The second candlestick opens with a gap and will close below the price for the bearish candlestick.

on neck candlestick

The market’s major sellers are represented by the gap and the bearish candlestick. The market’s weakness is also shown by the close of a small bullish candlestick, which closes lower than the closing price of its predecessor candlestick.

If a neck candlestick pattern in bearish trends forms, it is advisable to open a sale trade or continue holding on to sell orders.

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Lines of separation for bearish parties

The bearish separating lines are a pattern of candlesticks that has two candles of the same color with a gap in between. While the candlesticks of equal size will appear almost identical, this is not a requirement. The bullish candlestick is first to form. A bearish candlestick then forms with a big gap down. The low of the bullish candlestick is reached by the bearish candlestick.

bearish separating lines

The pattern will appear during a bearish market, which means that the price is likely to continue falling. After a small bullish retracement, you should consider opening a sell order.

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Tasuki Gap, Downside

The downside Tasuki gap is a combination of three candlesticks plus a negative gap. It’s a continuation of the bearish trend, in which one candlestick is bearish. Next, the second candle will open with a gap and then close with a bearish-looking body. The third candlestick then moves upwards to the gap, but it does not go beyond the region.

downside tasuki gap candlestick

A pair of bearish candlesticks that have a gap of down indicate the strength of the sellers. The closing of a bullish candle just before the gap indicates weakness for buyers. The sellers dominate here, which means the price trend will continue downwards.

This must occur during a downtrend.

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Do not play with three bars.

The trend continuation candlestick pattern of bearish three-bar play consists of three big, red candlesticks and a base candle. It also creates the demand zone, such as a drop base drop pattern for supply and demand trading.

bearish three bar play candlestick

You should place a stop-loss above the highest candlestick or base in this trade.

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Bottom line

The role of candlestick patterns is crucial in forecasting any market trend. Below are six continuation candlestick candlestick patterns for bearish trends that can be used to forecast the trend of any market. These patterns are important for stock and forex traders.

It is more profitable to use continuation patterns than reversals. Before you use any pattern on your live trading account, make sure that it is properly backtested.

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