📉 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.

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

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

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

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

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