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What is bearish formations and how to read it

Table of Contents

As every forex trader knows bearish markets are one of the most important specification of the markets, to understand and knowing it is essential and fundamental rule for any forex trader beginner or pro. We hope that this part of our forex lessons is one of our best dedications, so use the information and max your profits. Also we recommend you to trade only via the brokers listed on this site, as we have already checked and verified them. Remember that knowing the fundamentals is one thing, but finding the proper broker is another.

On Neck Bearish

Bearish On Neck formation is black candlestick followed by small white candlestick, which is characterized with price of closing similar to the lowest price of its forerunning candlestick by time of descending trend. If the lower price of white candlestick gets passed we expect the descending trend to continue.

Criteria of identification:

bearish on neckOn Neck formation is unrealized Bullish Piercing Line. The two formations are different only in that, the body of white candlestick from the second day always stays under the lowest value reached in the previous day. On Neck is happening in time of descending trend. If the first candlestick is with long black body, the possibility of strong descending trend rise up. On the next day, the market opens with descending gap, but after that the price come back closely to the lowest reached in previous day. This formation is not suitable if we are trying to catch a potential bottom. It is most possible the descending trend not to continue enough long.
Bearish On Neck formation is different from Bullish Meeting Lines. Confirmation on the third day is necessary and it is best if it is in the form of black candlestick, with price of opening lower than previous price of closing or new lower price of closing. Equivalent of this candlestick – formation is On Neck Bearish graphic:

In Neck Bearish

Bearish In Neck formation is black candlestick, followed by small white candlestick, which is characterized with price of closing, little higher than the lower price of its forerunning candlestick by time of descending trend. If the lowest price of white candlestick gets passed, we expect descending trend to continue.

bearish in neckCriteria of identification:

On Neck formation is unrealized Bullish Piercing Line. The two formations are different only in that, the body of white candlestick from the second day always stays under the lowest value reached in the previous day. In Neck is happening in time of descending trend. If the first candlestick is with long black body, the possibility of strong descending trend rise up. The price opens with descending gap, but after that comes back near higher than the price reached in previous day. This formation is not suitable if we are trying to catch a potential bottom. It is most possible the descending trend not to continue enough long.
Confirmation on the third day is necessary and it is best if it is in the form of black candlestick, with price of opening lower than previous price of closing or new lower price of closing. Equivalent of this candlestick – formation is In Neck Bearish graphic:

Low Price Gapping

Low Price Gapping is continuing trend formation, which shows temporarily interrupting, but without turning the main trend. Formation is characterized with long black candlestick, received in descending trend, which is followed by several candlesticks with small bodies, which are creating illusion of turning the trend. It is best if all bodies are white, but it doesn’t matter if all three are with different color. These small bodies have to be in range (High – Low) of black candlestick from the first day. The formation ends with long black candlestick, which opens with descending gap and to the end of the day the price of closing reaches new bottom and shows, that bears already took finally supremacy. The small ascending trend between two long black candlesticks simply shows temporarily interrupting the trend, after that descending trend continues.

bearish low price cappingCriteria of identification:

Low Price Gapping is continuing trend formation with temporarily interrupting of the trend without turning it. Temporarily interrupting shows that there are doubts of continuing the main trend. This doubts are growing from consecutive small candlesticks, that are formed in opposite direction of the main trend. But after that providing the fact it doesn’t reaches new highest value, the bears takes the initiative again and fast reaches to new bottom (lowest value).
Confidence of that formation is very high. But it is recommended verification in form of black candlestick with price of closing lower than previous. Equivalent of this candlestick – formation is Low Price Gapping graphic:

Falling Three Methods

Low Price Gapping is continuing trend formation, which shows temporarily interrupting, but without turning the main trend. Formation is characterized with long black candlestick, received in descending trend, which is followed by several candlesticks with small bodies, which are creating illusion of turning the trend. It is best if all bodies are white, but it doesn’t matter if all three are with different color. This small bodies have to be in range (High – Low) of black candlestick from the first day. The formation ends with long black candlestick, which has a price of closing reaching new bottom and shows, that bears are already taken supremacy. The little ascending trend, between the two long black candlesticks, simply shows temporarily interrupting the trend, and after that descending trend continues.

bearish falling treesCriteria of identification:

Low Price Gapping is continuing trend formation with temporarily interrupting of the trend without turning it. Temporarily interrupting shows that there are doubts of continuing the main trend. This doubts are growing from consecutive small candlesticks, that are formed in opposite direction of the main trend. But after that providing the fact it doesn’t reaches new highest value, the bears takes the initiative again and fast reaches to new bottom (lowest value).
Confidence of that formation is very high. But it is recommended verification in form of black candlestick with price of closing lower than previous. Equivalent of this candlestick – formation is Falling Three Methods graphic:

Downside Gap Three Methods

First two candlesticks are with long black bodies and gap between them. The third candlestick is white, which swallows the gap opened in the first two.

bearish Downside Gap Three MethodsCriteria of identification:

Downside Gap Three Methods formation is happening in descend trend, which has been confirmed with candlestick, leaving gap to direction of moving the trend. The price of opening on the third day is in the body of the second day and by the end of the forming of this white candlestick, the gap closes. Swallowing this gap is interpreted like level of support for the descending trend
This information can be compared with Bearish Downside Tasuki Gap. The difference is, that in the second the gap is not swallowed between the first two days. It is recommended confirming the descend trend by form of black candlestick with price of closing lower than previous. Equivalent of this candlestick – formation is Downside Gap Three Methods graphic:

Bearish Gravestone Doji

Gravestone Doji is a formation, in which the prices of opening and closing are similar to the lowest value reached on the day. This is turning formation. It happens in the end of ascending trend just like Bearish Shooting Star formation.

Bearish Gravestone DojiCriteria of identification:

Gravestone Doji in the end of ascending trend has Bearish meaning. The market opens in the lowest value for the day. Next comes sharply increasing of the prices (even reaching new top). Bears are taking back the initiative and to the end of the day, the price of closing already coincides with the price of the opening, which is warning for all, who are with long positions. Gravestone Doji is “the grave of all bulls, which are died, defending their long positions”.
Bearish Gravestone Doji formation is more important than Bearish Shooting Star.As big is the higher shade, that more Bearish is the signal, that is income from Bearish Gravestone Doji formation. It is necessary to confirm by form of black candlestick, gap in descending direction, or price of closing lower than the price from the previous day. Equivalent of this candlestick – formation is Bearish Gravestone Doji graphic:

Side By Side White Lines Bearish

This formation has black candlestick, which is followed by two white candlesticks, in time of descending trend. In particular – the second and the third candlestick answers with gap from the first and that means that we don’t expect turning the trend.

Side By Side White Lines BearishCriteria of identification:

We have descending trend, which is continued with gap and through all second day the price is rising, but it cannot close this gap. At the third day the price of opening is nearly the same, like on the previous day, but the level of opposition is around the open gap after the first day. The exceptions are that the price must continue falling and the trend stay descending.
The two white candlesticks, not only must be with the same size, but the price of opening must be nearly the same.
Confirmation on the next day is necessary and it is best if it is by form of black candlestick, which must be with the price of opening lower than the previous price of closing, which must confirm, that descending trend continues. Equivalent of this candlestick – formation is Side By Side White Lines Bearish graphic:

Three Line Strike Bearish

This formation has 3 similar by size black candlesticks, which are followed by long white candlestick, turning back the price near to the starting price, the price of opening of the first candlestick from formation. If descending trend before this last candlestick was really strong, we expect it to continue in the same direction.

Three Line Strike BearishCriteria of identification:

Bearish Three Line Strike formation happens in time of descending trend, three black candlesticks shows it. We saw also that, on the fourth day the price of opening is higher than the trend, but soon later it turns and to the end of the day totally swallows the last three candlesticks. If the trend before that formation was really enough strong, after that we expect to continue in the same direction.
Confirmation on the fifth day is necessary and it is best if it is by form of black candlestick, which is with price of opening lower than previous price of closing. Equivalent of this candlestick – formation is Three Line Strike Bearish graphic:

Thrusting Bearish

Bearish Thrusting formation is characterized with white candlestick, which has price of closing in body of previous black candlestick, but is under its middle. This is a signal for continuing ascending trend.

Thrusting BearishCriteria of identification:

Bearish Thrusting formation shows unsure in continuing the descending trend. But the fact that the price of closing on the second day cannot even reach the middle of the body of the previous day, gives us a hope for continuing the trend.
Bearish Thrusting formation is weaker than Bearish On Neck and In Neck formations. Confirmation on the next day is necessary and it is best if it is by form of black candlestick, which must have price of opening lower than previous price of closing, which will confirm the descending trend continuing. Equivalent of this candlestick – formation is Thrusting Bearish graphic:

Tasuki Downside Gap Bearish

This formation includes two long candlesticks divided with gap between them in time of descending trend. The third day is white candlestick, which partially closes the gap. This candlestick may be in a result of desire of the participants of the market to join on lower price. But expectations are trend to continue his direction.

Tasuki Downside Gap BearishCriteria of identification:

Bearish Downside Tasuki Gap formation is happening in continuing descending trend. The move down continues and on the second day is opened a gap in direction of the trend. Third day has price of opening in the body of previous candlestick, and after that partially swallows the opened gap.
Bearish Downside Tasuki Gap formation is happening very rarely.
The two bodies of the last two candlesticks must be nearly the same by size. The difference between Bearish Downside Tasuki Gap and Bearish Downside Gap Three Methods formations is only in that, in Bearish Downside Gap Three Methods formation the gap opened after the first day is completely swallowed by the third day. Confirmation on the next day is necessary and it is best if it is by form of black candlestick, which has price of opening lower than the previous price of closing or a gap in direction of descending trend. Equivalent of this candlestick – formation is Tasuki Downside Gap Bearish graphic:

Separating Lines Bearish

This formation is characterized with white candlestick in descending trend, which is followed by large gap at the opening on the next day, with price of opening nearly the same of price of opening in the first day. To the end of the second day we have black candlestick by form of Black Opening Marubozu. This is a signal for continuing the descending trend.

Separating Lines BearishCriteria of identification:

The white body (especially if it is large) in time of descending trend shows, that may the bulls has taken the control. But on the next day after created gap and price of opening nearly the same like on the previous day, we saw support of descending trend. If price of closing is even lower (the black candlestick is very long), then bears will feel very sure in continuing the trend.
The black candlestick must be Black Opening Marubozu. Confirmation on the next day is necessary and it is best if it is by form of black candlestick, which has price of opening lower than previous price of closing, or gap in direction of descending trend. Equivalent of this candlestick – formation is: Separating Lines Bearish graphic

Dark Cloud Cover Bearish

Dark Cloud Cover formation has two candlesticks, which gives a signal for top turning of the trend, which to this moment was ascending. On the first day we have big white candlestick. Second day, the price of opening is higher than reached highest price in previous day, but to the end of this day price of closing is near to the lowest reached price for the day and it is in the range under the middle of white body from previous candlestick.

Dark-Cloud Cover BearishCriteria of identification:

The market is in ascending trend. We have white candlestick followed by gap, which shows that still bull’s the control. But the price doesn’t continue to rise up. Market closes near to the lower point for the day. This is the moment, that bears took the initiative and gives their stop orders above the highest price reached that day.
If the price of closing is much under the middle of the body of white candlestick, the chances for a new top rise up very much. If the black candlestick don’t close under the middle of the body for the previous day it is best to wait for confirmation, which may be by form of black candlestick, big gap in descending direction or price of closing on the next day, lower than this on the second day. Equivalent of this candlestick – formation is Dark Cloud Cover Bearish graphic:

Three Black Crows

Three Black Crows formation indicate strong turning the trend. It has three black candlesticks. Price of opening on every next day is higher than price of closing on the previous day, but to the end of the day reaches new lowest value.

bearish Three Black CrowsCriteria of identification:

Three Black Crows formation is a result of the fact that market has hold high price enough long time and already reached the top. First black candlestick shows one categorically turning the trend. Next two days proves that bulls don’t control any more the direction of the market.
Price of opening on the second day and the third day must be in body of previous day. But it is best if we saw price of opening under the middle of the body of previous candlestick. The reliability of this formation is extremely high, but after all it is recommended to confirm by form of black candlestick with price of closing lower than previous one or gap in descending direction. Equivalent of this candlestick – formation is Three Black Crows graphic:

Identical Three Crows

Identical Three Crows formation indicates strong turning the trend. It has three black candlesticks. Price of opening on every next day is higher than price of closing on the previous day, but to the end of the day reaches new lowest value.

bearish Identical Three CrowsCriteria of identification:

Identical Three Crows formation is a result of the fact that market has hold high price enough long time and already reached the top. First black candlestick shows one categorically turning the trend. Next two days proves that bulls don’t control any more the direction of the market.
Price of opening on the second and the third day must be nearly the same like the price of closing on previous day.
The reliability of this formation is extremely high, but after all it is recommended to confirm by form of black candlestick with price of closing lower than previous one or gap in descending direction. Equivalent of this candlestick – formation is Identical Three Crows graphic:

Engulfing Bearish

Bearish Engulfing formation is big black body of candlestick, which swallows small white body in ascending trend (it is not necessary to swallow shades).

Engulfing BearishCriteria of identification:

The market is in ascending trend, which finishes with white candlestick with small body. Next day bears took initiative and the price of closing is lower than price of opening on previous day.
The connection between sizes of the two candlesticks is very important. If first day of Bearish Engulfing formation is with very small body (may even be Doji) and the second day is with much bigger body. That shows bulls are losing the initiative and it is very big possible bears took the control. If the second day swallows more than one body, then turning the trend is more possible. It is recommended confirmation by form of black candlestick with price of closing lower than the previous one or a gap in descending directions, to be sure that trend is turned. Equivalent of this candlestick – formation is Engulfing Bearish graphic:

Harami Bearish

Bearish Harami formation has two candlesticks, and the second one is with small body, which is totally in the range of first body. “Harami” is old Japan word, which means “pregnant”. The big white candlestick is the “mother” and the small is the “baby”

Bearish HaramiCriteria of identification:

At Bearish Harami formation, the market is in ascending trend, which ends with white candlestick with large body. On the next day, bears took the initiative by form of black candlestick, which shows uncertainty and the power of the bulls fall down, which may cause probably turning the trend.
It is important, that the black candlestick from the second day is with smaller body than the previous one. Bearish Harami formation don’t mean surely – turning the trend. Rather shows that market won’t continue its ascending direction. But if that formation happens in new top – the possibility of turning is very big. It is necessary to take confirmation on the third day by form of black candlestick with price of closing lower than previous or gap in descending direction, to be sure that trend is turned. We prefer Bearish Harami, which price of closing is under the middle of the body of the previous white candlestick. Equivalent of this candlestick – formation is Harami Bearish graphic:

BreakAway Bearish

This formation is happening when there is ascending trend, when bulls start to lose their power. This we can see from the black candlestick, which cannot close totally the gap, opened after first day. These events warn us for possible turning of the trend.

BreakAway BearishCriteria of identification:

Bearish Breakaway formation is constructed by gap to direction of ascending trend, followed by three days with prices of closing higher and higher than the previous. In spite of the weak trend, we have confirmation for turning at the fifth day. Black candlestick swallows totally the previous 3 days, which is sure sign that the bears took the initiative.
It is necessary confirmation at the sixth day by form of black candlestick with price of closing lower than the previous, or gap in descending direction, to be sure that the trend has turned. Equivalent of this candlestick – formation is BreakAway Bearish graphic:

Evening Star (three river)

This is one of the main turning trend formations, compound from three candlesticks. The first is with big white body. The second has small body, which may be white or black and between two days there is opened gap. These two candlesticks form the star. At the final we have black candlestick with price of closing in the body from the first day. This formation clearly shows that the market is turned to opposite direction.

bearish Evening StarCriteria of identification:

The perfect Bearish Evening Star formation has gap before and after the second day. The second gap is happening rarely, but even without it, the power of this formation is proved.
The stars may be more than one. The color of the star and the size of the gap are not very important. The assurance of this formation is really big, but it is recommended to take confirmation with black candlestick with price of closing lower than the previous or gap in descending direction, to be sure that the trend is turned. Equivalent of this candlestick – formation is Evening Star (three river) graphic :

Evening Doji Star

This if one of the main turning trend formations compound from three candlesticks. The first is with large white body. The second is Doji, and between them there is an open gap. These two candlesticks form the star. At the end we have black candlestick with price of closing in the body of the first day. This formation clearly shows that the market has turned in opposite direction.

bearish Evening Doji StarCriteria of identification:

The perfect Bearish Evening Doji Star formation has gap before and after the second day. The second gap is happening rarely, but even without it, the power of this formation is very big.
The stars may be more than one. The size of the gap after first day is not very important. The assurance of this formation is really big, but it is recommended to take confirmation with black candlestick with price of closing lower than the previous or gap in descending direction, to be sure that the trend is turned. Equivalent of this candlestick – formation is Evening Doji Star graphic:

Tri Star

This is very rare formation, but extremely strong for turning the trend. It is formed by three Doji, and the middle is Doji Star.

bearish Tri StarCriteria of identification:

Tri Star formation is happening when the market is long time in ascending trend. When trend start to fall, small bodies are formed. The first Doji shows big variation. The second Doji proves that the trend has lost its direction. At the end, the third Doji announce the end of the trend, and give start for turning it.
The assurance of this formation is very strong, but it is recommended to take confirmation on the fourth day with black candlestick with price of closing lower than the previous or a gap in descending direction. Equivalent of this candlestick – formation is Tri Star graphic:

Hanging Man

Hanging Man is formation with one candlestick, which shows turning the trend at its top. It is very similar like Dragonfly Doji formation. At the second one price of opening and the closing are the same, but in Hanging Man we have small body.

bearish Hanging ManCriteria of identification:

Hanging man is turning trend formation. It signalized that the trend is reached its higher point and that is strong level of strength. Because that level is happening after ascending trend, the signal is that the pressure rises up for selling. After all, to the end of the session bulls again took the initiative and raise the price of closing nearly to the price of opening. If this happen by time of strong trend, we can expect turning it.
The perfect formation is when the downs shade is two, even three times bigger than the body of Hanging Man. Dragonfly Doji formation is stronger as a signal of turning than the Hanging Man. If Hanging Man formation is with black body, that means, the tries of the bulls to take the initiative back are unsuccessful and that is one more bear signal for turning the trend. Confirmation at the next day with black candlestick with price of closing lower than the previous or gap in descending direction is necessary, to be sure of turning the trend. Equivalent of this candlestick – formation is Hanging Man graphic:

Two Crows

By time of ascending trend, the market closes at lower price after opening a gap. After that we have black day, which fill the gap finishing with Two Crows formation. As a result there is interrupting the ascending trend and then it turns.

bearish Two CrowsCriteria of identification:

In formation Two Crows, the market is in ascending trend. A gap is created at opening of the second day, but continues a price of closing lower than price of opening, which is a warning that the strong of the trend may fall. On the third day the price of opening also is bigger, but the level isn’t bigger than this of opening at the previous day. Next there is black candlestick, and the price of closing is in range of the body from first day. The fact that the opened gap from the second day is already filled shows that the trend probably is turning.
Confirmation at fourth day with black candlestick with price of closing lower than previous or a gap in descending direction, is necessary to be sure that the trend has turned. Equivalent of this candlestick – formation is Two Crows graphic:

Shooting Star

The formation Bearish Shooting Star shows that the market has reached its top. We have candlestick with small body and big upper shade, which leaves gap after the body of previous candlestick.

bearish Shooting StarCriteria of identification:

The formation Shooting Star just shows us that the market opens near to the lower value, after that it reaches new top, but at the end it come back near to the price of opening. With other words – the ascending trend don’t find enough support in this session.
This formation is not as strong signal for turning the trend, as Evening star. The color of the star doesn’t matter.
The perfect star is when the second day leaves big gap. Confirmation of the third day with black candlestick with price of closing lower than previous or a gap in descending direction, is necessary to be sure that the trend has turned. Equivalent of this candlestick – formation is Shooting Star graphic:

Abandoned Baby

The formation Bearish Abandoned Baby is very rare. It is compound with Doji Star, which is separated with gap (including the shades) from the two candlesticks (of first and third day).

bearish Abandoned BabyCriteria of identification:

Most of the three-day Star formations have the same scenario. At the time of ascending trend, the market forms big black candlestick, after that it opens the second day with a gap. The deal range in second day is very small and the price of closing is the same as the price of opening. This is a clear sign, that turning of the trend is possible. The third day is confirmation for this, forming black candlestick. If we have a descending gap, the confirmation will be more powerful.
The formation Bearish Abandoned Baby is very rare. In spite of that this formation is very reliable, confirmation on the fourth day with black candlestick with price of closing lower than the previous one, or a gap in descending direction, is necessary to be sure that the trend has turned. Equivalent of this candlestick – formation is Abandoned Baby graphic:

Doji Star

When we have doji following white candlestick with open gap in the middle of ascending trend, we got Bearish Doji Star formation.
bearish Doji StarCriteria of identification:

We have strong control of bulls and the market is in ascending trend. But the Bearish Doji Star formation shows, that this control will become weak and the searching will be balanced with the demand. The most possible continuing is turning the trend.
Confirmation on the third day with black candlestick with price of closing lower than the previous or a gap in descending direction is necessary to be sure that the trend has turned. Equivalent of this candlestick – formation is Doji Star graphic:

Kicking Bearish

White Marubozu is followed by gap in descending direction. The second day closes forming black Marubozu.

Kicking BearishCriteria of identification:

The formation Bearish Kicking sends to us a clear signal that the trend will continue in descending direction. It doesn’t matter what was the direction of the previous trend. The price of opening on the second day must not be in the range of trade of previous session, and the price of closing rise the gap.
The two candlesticks don’t have shades – they are Marubozu. The formation Bearish Kicking is similar with Bearish Separating Lines with the only difference that at the second one, prices of opening are the same, but here we have open gap. In spite of that this formation is very reliable, confirmation on the third day with black candlestick with price of closing lower than the previous or a gap in descending direction, is necessary to be sure that the trend has turned. Equivalent of this candlestick – formation is Kicking Bearish graphic:

Bearish Three Outside Down

The formation Bearish Three Outside Down is the another name for confirming the Bearish Engulfing. Third day shows that turning the trend is already a fact.

Bearish Three Outside DownCriteria of identification:

The first two days forms Bearish Engulfing, and the third day is confirmation for turning the ascending trend. The price of closing reaches lower levels than in the previous session.
In spite of that this formation is very reliable, confirmation with black candlestick with price of closing lower than the previous or a gap in descending trend, is necessary to be sure that the trend has turned. Equivalent of this candlestick – formation is Bearish Three Outside Down graphic:

Three Inside Down

The formation Three Inside Down is the other name to confirm Bearish Harami. Third day shows that turning the trend is already a fact.

The first two days is really Bearish Harami formation and the third day is a confirmation for turning the trend. We have black candlestick with price of closing lower than previous one.
In spite of that this formation is very reliable, confirmation with black candlestick with price of closing lower than the previous or a gap in descending direction, is necessary to be sure that the trend has turned. Equivalent of this candlestick – formation is Three Inside Down graphic:

Belt Hold

The formation Bearish Belt Hold is composed from one candlestick, which is Black Opening Marubozu forming in time of ascending trend. The price of opening is the same with the higher point, after we have moving opposite of previous trend, and at the end price of closing is nearly the same like the lowest price reached in this session. The bigger body of Marubozu shows – bigger resistance against the previous trend.

Bearish Belt HoldCriteria of identification:

Confirmation on next day with black candlestick with price of closing lower than the previous or a gap in descending direction, is necessary to be sure that the trend has turned. Equivalent of this candlestick – formation is Belt Hold graphic:

Meeting Lines (counterattack)

The market is in ascending trend, which is confirmed by the big white candlestick from the first day. Next there is opening with a gap in direction of the trend, but to the end of the second day, the price of closing stay unchanged from the price of closing on the previous day. This formation is called Bearish Meeting Lines and it shows what is the balance between bulls and bears in the market at the moment.

Bearish Meeting LinesCriteria of identification:

Bearish Meeting Lines is a turning the ascending trend formation. The first candlestick is white with big body. The next day opens with a gap to direction of the trend, but bears fast take the initiative and to the end of this session the price of closing again reaches the levels from the previous day.
The formation Bearish Meeting Lines is close to the Bearish Dark Cloud Cover. Both are with the same of size candlesticks. The difference is only in that, the Bearish Meeting Lines don’t close in the body of the previous session, but turns back only to the price of closing on the previous day. So the Dark Cloud Cover is more reliable like turning trend formation than Bearish Meeting Lines. The confirmation on the third day with black candlestick with price of closing lower than the previous or a gap in descending direction, is necessary to be sure that the trend has turned. Equivalent of this candlestick – formation is Meeting Lines (counterattack) graphic:

Harami Cross

Harami Cross formation is a doji after candlestick with long white body. This is one of the strongest turning formations and it is even more important than normal Bearish Harami.

Bearish Harami CrossCriteria of identification:

The Bearish Harami Cross formation is a sign of indecision. The trend is bullish and for proving on this is the big white body. Next is a doji, which shows us that may be the moment of turning is near.
Bearish Harami is not a main turning formation, but Bearish Harami Cross warns that the bulls don’t have the control any more. In spite of that this formation is very reliable, confirmation on the next day with black candlestick with price of closing lower than the previous or a gap in descending trend is necessary to be sure the trend has turned. Equivalent of this candlestick – formation is Bearish Harami Cross graphic:

Upside Gap Two Crows

The Upside Gap Two Crows formation is formed from 3 candlesticks, which shows that the top is reached and it is possibly turning the trend. The first candlestick is with large white body. Next day opens with ascending gap, and forms black candlestick with small body. On the third day we have again candlestick with black body, which opens higher than the price of opening from the second day, and closes under the price of closing from previous session.

Bearish Upside Gap Two CrowsCriteria of identification:

The market is in ascending trend and even opens with gap. But reached new top cannot be hold and a black candlestick is formed. The third day increases the bearish moods and again the price of closing is under than this on the previous day. That is why we ask the question: If the market is so strong, why it can’t hold the new top? The answer is clear. Bulls don’t have the control anymore, in spite of their desire.
A confirmation in Bearish Upside Gap Two Cross is recommended. If the fourth day we have price of closing under this on the third day, this is a sign for turning the trend. Equivalent of this candlestick – formation is Upside Gap Two Crows graphic:

Bearish Deliberation

The formation Bearish Deliberation is derivative from Bearish Three White Soldiers. It also shows weak the control of the bulls just like Bearish Advance Block. Here this weakness is happening suddenly on the third day. The small white body shows the end of the ascending trend and a possibility of turning.

Bearish DeliberationCriteria of identification:

The formation Bearish Deliberation is happening on time of ascending trend and it shows that bulls start to lose control.
Bearish Deliberation formation is turning, but also has a potential to be followed by big falling of the prices. If that happen when a new top is reached, it is stronger. All long positions must be liquidate but is too soon to open short positions. Confirmation on the forth day is recommended, to be sure of turning the trend. It may be with black candlestick, gap in descending direction or a price of closing lower than this on the third day. Equivalent of this candlestick – formation is Bearish Deliberation graphic:

Bearish Advance Block

This is a formation with three white candlesticks, which has price of closing higher than the previous one. Bearish Advance Block is similar like Bullish Three White Soldiers. The difference is in that every next day gives us a weaker signal for continuing the ascending trend. This suggests turning the trend.

Bearish Advance BlockCriteria of identification:

If the second and the third candlestick give a sign for eventually weak of the trend, this means that it is time to think of closing the closing the long positions. We must pay attention when the Bearish Advance Block formation is happen in strong ascending trend. A sign for weak of the trend is eventually forming of a small body with large upper shade.
The Bearish Advance Block formation is not classical turning trend formation, but there is potential after it to see totally descending of the price. It is recommended to liquidate all long positions but it is too soon to take short positions.
The variation of the power of ascending trend we can see from the long upper shade of the third day. A confirmation on the fourth day is recommended, to be sure that the trend is turning. It can be a black candlestick, gap in descending direction, or a price of closing lower than this on the third day. Equivalent of this candlestick – formation is Bearish Advance Block graphic:

Bearish Dragonfly Doji

Bearish Dragonfly Doji is a formation with one candlestick, which happens when a new top is reached and the trend is ascending. It is close to Bearish Hanging Man. The prices of opening and closing are the same like the higher for the day.

Bearish Dragonfly DojiCriteria of identification:

The trend is ascending. After opening we have sharply descending of the price. But to the end of the session bulls again take the initiative and the price of closing is the same like this of opening. This already formed long lower shade shows that the market has tested lower levels. If on the next day we have a price of opening under this from the previous session, we can expect again sharply falling of the prices because of closing the very long positions.
The Bearish Dragonfly Doji formation is stronger as a bearish signal, than Bearish Hanging Man. It is necessary to confirm with black candlestick, gap in descending direction or a price of closing lower than this of the previous day. Equivalent of this candlestick – formation is Bearish Dragonfly Doji graphic:

Bearish Long Legged Doji

Long Legged Doji is characterized with very long shades. This formation shows indecision between bears and bulls and it is very important signal for turning the trend.

Bearish Long Legged DojiCriteria of identification:

This doji, shows that there is indecision from bulls and the bears in the market. Long – legged Doji also shows that the trade was much higher and much lower the price of opening, but in the end of the session closes near or even in the same level.
Long Legged Doji is the most important in the end of the ascending trend. It is necessary confirmation with black candlestick, gap in descending direction or a price of closing lower than this of the previous day. Equivalent of this candlestick – formation is In Neck Bearish graphic: