๐Ÿ“‰ 4 Common Bearish Patterns

In trading, a bearish pattern is a technical chart pattern that indicates a potential trend reversal from an uptrend to a downtrend. These patterns are characterized by a series of price movements that signal a bearish sentiment among traders.

๐Ÿ“Bear Flag
๐Ÿ”ธ A small rectangular pattern that slopes against the preceding trend
๐Ÿ”ธ Forms after a rapid price decline (flagpole)
๐Ÿ”ธ The pattern is completed when the price breaks below the lower trend line of the flag

๐Ÿ“Descending Triangle
๐Ÿ”ธ A bearish continuation pattern that forms with a horizontal support line and a descending trendline
๐Ÿ”ธ Forms as the price reaches lower highs, while the lows remain at the same level
๐Ÿ”ธ The pattern is completed when the price breaks below the horizontal support line

๐Ÿ“Rising Wedge
๐Ÿ”ธ A bearish reversal pattern that forms with a series of higher highs and higher lows
๐Ÿ”ธ The pattern forms as the price moves up in a narrowing range
๐Ÿ”ธ The pattern is completed when the price breaks below the lower trendline

๐Ÿ“Triple Top
๐Ÿ”ธ A bearish reversal pattern that forms with three peaks at the same price level
๐Ÿ”ธ The pattern forms as the price reaches resistance at the same level multiple times
๐Ÿ”ธ The pattern is completed when the price breaks below the support level, which connects the lows between the peaks

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