📉 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
🔸 A small rectangular pattern that slopes against the preceding trend
🔸 Forms after a rapid price decline (flagpole)
🔸 The pattern is completed when the price breaks below the lower trend line of the flag

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

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

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

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