Trend continuation trading is going to
be your number one option when you are
day trading the Forex markets or the
cryptocurrency markets any markets
because price continues in the direction
that it's going 60 of the time so in
this video I'm going to show you
everything that you need to know about
bearish Candlestick formations
[Music]
welcome back to the channel everybody my
name is Artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable hopefully you guys watched
the previous video about bullish candle
formations now let's get into the
bearish ones the first candle formation
that we're going to cover is called the
shooting star this candle formation is
the opposite of the hammer basically
you're looking for a long wick on the
top and you want the body of the candle
to be approximately one-third of the
total length of the candle this shows
bullish momentum up and then a hard
rejection showing bearish momentum the
next candle formation is going to be the
hanging man basically head on top body
on bottom again if you've watched my
previous videos on trading Hammer candle
formations the hammer is usually
accompanied with the arm whichever way
the following subsequent candle goes is
usually the way that that price is going
to move so the arm swings the hammer in
that direction in this case it is
bearish next candle formation is going
to be the gravestone OG again price
opens exactly where it closes with a
long wick on the top and the next one of
course is my favorite it is the
engulfing candle formation I like to
trade this with a three-line strike
meaning three subsequent bullish candles
and then one engulfing bearish candle of
the three line strikes a bearish
three-line strike is my favorite because
price loves to drop much faster than it
likes to go up the next one is going to
be a dark cloud cover this candle
formation is better on the daily time
frame for swing Traders I don't swing
trade so I don't like these formations
the next two go hand in hand it is the
evening star and evening doji star both
of these candle formations for me are in
the same category as the three-line
strike engulfing candle but because that
doji or evening star is such a small
candle and the subsequent candle is
engulfing it shows a momentum shift at
that point these two as well as the
engulfing candles are my favorite price
action candle formations to trade and
the last one is going to be the three
black crows the opposite of the three
white soldiers just to quickly discuss
the candle names three white soldiers
white candles three black crows black
candles because your candles should not
be red and green they should be white
and black or some sort of neutral color
essentially you have bullish momentum up
and then three solid bearish candles
showing the momentum shift from that
point now let's get into the charts and
show you what these look like first
thing that you're going to want to do is
open up the indicators Tab and type in
all patterns and then you will see in
the technicals all Candlestick patterns
add that onto your charts and add it to
your favorites at this point what you
want to do is open up the settings
select no detection and select bearish
as the pattern type going to uncheck
these from the previous video and what
we're looking for is a shooting star
hanging man gravestone doji engulfing
dark cloud cover evening doji star and
evening star and three black crows gonna
remove my drawings from the previous
video and look for a downtrend going to
draw my 10 pip box again and I'm a big
fan of short positions because they have
a higher likelihood of playing out price
loves to drop so if we're looking at a
downtrend you can see that you got your
10 Pips here here here here here stopped
out stopped out stopped out here here
here here and stopped out just from
going from these stupid arrows that are
above the prices you could have made a
lot of money but again if you coupled
that with price action and traded areas
of support and resistance as well as
breaks of structure you could have
easily eliminated half of these trades
and only taken the good signals I cannot
emphasize enough how important it is to
trade with the trend if you have not
seen the video on bullish candle
formations watch this video right here
and if you want to learn price action
trading right down here thanks so much
for watching and we will see you in the
next video