PAMM Counter Trader’s Preference : Highly Reliable Bearish Reversal Pattern

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Hi PAMM Trader, this is especially information for type of counter trend PAMM trader.

A counter trend trader will like the formation of candlestick with the reversal pattern very much. With this pattern,he will get a huge profit because the buying action is taken in the peak point with a relatively cheap price.

Let us discuss about the bearish reversal pattern, which is the reversal pattern from the bullish trend (up trend) become bearish trend (down trend). According to the strenght and weakness of the signal, this pattern is devided into three parts. They are :

  1. Strong Bearish Reversal Pattern
  2. Moderate Bearish Reversal Pattern
  3. Weak Bearish Reversal Pattern

For now, we would only discus about the strong bearish reversal pattern or the highly reliable bearish reversal pattern.

  1. Abandoned Baby

This pattern begins with the bullish trend and ends up  with the white marubozu. But in the last session comes the doji candle which is the early sign of the reversal to the bearish market. Further more it will be followed by the bearish candle.

bearish-Abandoned-Baby

  1. Dark Cloud Cover

The early trend is the bullish, followed by the bearish candle of marubozu which covers the previous bullish candle with its quite long tail and followed by the other bearish candles behind it. This pattern is quite valid in the D1 timeframe, and the bearish trend will be continued in the next movement.

dark-cloud-cover-japanese-candlestick

  1. Hanging Man

This pattern begins with the early bullish trend and ends up with the white marubozu. But in he the last session comes the hanging man candle as the early sign of the coming reversal and followed by the quite significant bearish candle which makes the redirection of the value.

forex_candlesticks_patterns_hanging_man_example

  1. Evening Star

In this pattern, the early movement trend is the strong bullish and creates the formation of doji candle in the end, followed by other bearish candles. Doji is the early sign of the coming reversal trend. This pattern is quite valid in D1 timeframe. After this pattern was created, the bearish trend will be continued in the next movement.

evening-star

  1. Three Inside Down

Three Inside down is the trend which has the strong bullish at its early movement, ends up with the formation of the short bodycandle and followed by other bearish candles. This short candle is the early sign of the coming reversal trend. This pattern is quite valid in the D1 timeframe. And after this pattern was created, the bearish trend will be continued in the next movement.

bearish-three-inside-down

  1. Three Outside Down

In this pattern, the previous pattern is the bullish, followed by the formation of double top. We can see here that value movement could not be up anymore since the buying pressure is countered by the selling pressure. At the end, seller is the winner and there comes the marubozu bearish candle which covers the previous bullish candle. The early beginning of the formation of changing or the reversal trend begins here.

bearish-three-outside-down

 

Happy Investing !