Candlestick Patterns · Bearish
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A bearish candle that opens above the prior high and closes below the prior midpoint.
Buyers gapped the open up, then sellers closed back through at least half of the previous bullish body.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- The first candle is bullish.
- The second opens above the first candle's high.
- The second closes below the midpoint of the first body, but not below the first open.
Market context
It is a softer version of a bearish engulfing pattern.
Entry example
An example entry is below the second candle's low.
Stop-loss example
An example stop is above the second candle's high.
Target example
An example target is the open of the first candle, then the prior swing.
Common mistakes
- Using a red candle that never reached the midpoint of the prior body.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.