(Bearish)
Stalled Pattern |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bearish
Prior Trend of Candlesticks: Bullish
Reliability of Candlesticks : Confirmation Required
Confirmation of Candlesticks: Suggested
Candlestick Patterns Key Reference |
DESCRIPTION
Bearish Stalled pattern consists of two candlesticks.
The first candlestick have a long body. The second and third candlestick have a small body.
The second candlestick body is near the top of the first long bullish candlestick's body or above it.
Bearish Stalled pattern is recognized during an uptrend, it signals a stalling out of an uptrend.
PATTERN RECOGNITION
1. Bearish Stalled pattern can be identified by uptrend.
2. Refering to above diagram, we will see three bullish candlestick (body get smaller) of each trading session getting smaller.
3. Then we will see the fourth bearish candlestick opens slightly lower than the open of the previous bullish candlestick and reverses the trend and close slightly below the previous bullish candlestick open.
EXPLAINATION
The Bearish Stalled pattern is a obvious signal of a loss of bullish momentum as seen in each candlesticks trading smaller and smaller.
The spinning top found at the top of the prior uptrend inidcate that the market is resting. The next bearish candlestick confirm the end of an uptrend and consolidation might happen next.
The Consolidation Patterns imply that the trend may have ended and may go sideways. There is a possibility of a reversal but would require confirmation in the next session.
POINT TO NOTE
A confirmation of trend reversal is required in a form of a bearish candlestick which open below or a gap down the previous candlestick close.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
