📉 Bearish Reversal Patterns (Trend Changing from Up to Down)
1. Rising Wedge
- Price consolidates within an upward-sloping narrowing range.
- A breakdown below the lower trendline signals a bearish move.
2. Inverted Flag
- A brief upward consolidation after a strong downtrend.
- A breakdown below the lower support line confirms bearish momentum.
3. Head & Shoulders
- A peak (left shoulder), a higher peak (head), and a lower peak (right shoulder).
- A break below the neckline confirms a bearish trend.
4. Bearish Rectangle
- Price consolidates in a horizontal range after a downtrend.
- A break below support confirms continuation of the bearish trend.
5. Descending Triangle
- Lower highs form against a flat support level.
- A breakdown below the support line signals further downside.
6. Symmetrical Triangle
- Price moves within a converging trendline.
- A break below the lower trendline confirms a bearish continuation.
🔹 Trading Strategy Considerations
- Entry Point: After price breaks below key support levels.
- Stop Loss: Placed above resistance levels or pattern highs.
- Target: Measured by the height of the pattern projected downward.
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