There are several bearish candlestick patterns that are widely used by traders in the Indian market. Here are some of the most common ones:
Bearish Engulfing Pattern: This pattern consists of two candles – the first is a bullish candle and the second is a larger bearish candle that engulfs the first one. It is a strong reversal pattern and indicates a potential change in trend from bullish to bearish.
Hanging Man Pattern: This pattern occurs when a small candle with a long lower shadow is followed by a larger bearish candle. It is a bearish reversal pattern and indicates that the buyers are losing control and the sellers are taking over.
Shooting Star Pattern: This pattern is formed when a small candle with a long upper shadow is followed by a larger bearish candle. It is a bearish reversal pattern and indicates that the buyers are losing control and the sellers are taking over.
Dark Cloud Cover Pattern: This pattern is formed when a bullish candle is followed by a bearish candle that opens above the previous candle’s high but closes below its halfway mark. It is a strong reversal pattern and indicates a potential change in trend from bullish to bearish.
Three Black Crows Pattern: This pattern consists of three consecutive bearish candles that open and close at or near their lows. It is a strong bearish reversal pattern that indicates a potential change in trend from bullish to bearish.
It is important to note that these patterns should not be used in isolation and should be confirmed with other technical indicators and fundamental analysis before making any trading decisions. Additionally, traders should use proper risk management strategies to mitigate their losses in case the market moves against their positions.