TA Challenge: Find bearish candlestick patterns
My most-used bearish candlestick pattern is the Shooting Star. It appears at the end of an uptrend and signals a potential reversal in the stock's price movement. The pattern is characterized by a small real body, a long upper shadow, and little or no lower shadow.
It tells that the stock opened at a certain price, rose significantly during the day, but then closed near its opening price. This means that the bulls were initially in control but lost momentum towards the end of the day, allowing the bears to take over.
I will use this pattern to identify potential short-selling opportunities or to exit long positions. This should not be used in isolation and should be confirmed with other technical indicators or analysis.
It tells that the stock opened at a certain price, rose significantly during the day, but then closed near its opening price. This means that the bulls were initially in control but lost momentum towards the end of the day, allowing the bears to take over.
I will use this pattern to identify potential short-selling opportunities or to exit long positions. This should not be used in isolation and should be confirmed with other technical indicators or analysis.
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