4 BEARISH JAPANESE CANDLESTICK PATTERNS EVERY TRADER SHOULD KNOW 📊
📉 1. Hanging Man
Structure: Small body at the top, long lower wick (at least 2x the body), almost no upper shadow.
Context: Appears at the top of an uptrend.
Reading: Indicates that although the price closed near the maximum, there was strong selling pressure during the session. It may suggest that buyers are losing control.
Confirmation: Subsequent red candle with a lower close and increasing volume.
🌠 2. Shooting Star
Structure: Small body at the bottom, long upper wick (at least 2x the body), almost no lower shadow.
Context: Appears after a bullish impulse or near important resistances.
Reading: Indicates that buyers tried to break upward, but sellers strongly rejected that advance.
Confirmation: Next close below the body of the star and a break of minor support.
🪦 3. Gravestone Doji
Structure: Open and close at the same level (or very close), located at the session's minimum, with a long upper wick and no lower wick.
Context: Usually forms at market resistance ceilings.
Reading: The price aggressively pressured downwards, returning the price to the opening level. Signal of loss of bullish momentum.
Confirmation: Candle after the pattern support with an increase in volume.
🌀 4. Bearish Spinning Top
Structure: Small body (red or black) with long upper and lower wicks.
Context: Appears in an uptrend, in overbought areas or resistance.
Reading: Indecision in the market, but with a bearish bias if the close is lower than the open.
📌 These patterns increase their reliability when:
- They occur in key areas (resistances, Fibonacci levels, channel tops).
- They coincide with divergences in indicators such as RSI or MACD.
- They are confirmed with volume and market context.