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Bearish Patterns

BTC Breakdown Confirmed – Here’s Where BTC Could Surge NextBTC Breakdown Confirmed – Here’s Where BTC Could Surge Next 1️⃣ Long-Term Trendline Breakdown Confirmed 🔹 BTC has decisively broken the multi-year ascending trendline supporting price since Nov 2022. 🔹 The Breakdown + Retest at ~$104k-$108k confirms bearish structure ✅. 🔹 Retest failed in Oct 2025, confirming sellers are in control. 2️⃣ Fibonacci Levels Highlight Strong Demand 🔹 Price is now hovering between 0 Fib ($125,647) and 0.382 Fib ($56,494). 🔹 Measured move Targets: Strong Demand Zone $34,477 - $56,494 (0.618 - 0.382 Fib) 🔹 This is the accumulation zone for long-term positions, historically providing strong bounce potential. 3️⃣ Critical Support / Resistance Zones 🔹 Immediate Support: $85k-$87k (psychological) Major Support: 🔹 $56,494 (0.382 Fib, upper demand) 🔹 $44,133 (0.5 Fib, middle demand) 🔹 $34,477 (0.618 Fib, “Golden Pocket”, lower demand) Resistance: Broken trendline now acting as key supply 4️⃣ Potential Scenarios Bearish (High Probability) 🔹 Continuation down to Strong Demand Zone ($34k-$56k) 🔹 Represents 38-61% retracement from ATH, typical after trendline breakdown + retest Bullish (Needs Reclaim) 🔹 Reclaim broken trendline (~$95k-$100k) 🔹 Close above $104k = false breakdown, continuation to new highs Why I’m Watching $56,500 - $34,500 for Longs 🔹 Historical accumulation zone with high probability of a strong bounce 🔹 After breakdown + retest, price often retraces to 0.5 or 0.618 Fib before resuming bull trend 🔹 Perfect long-term entry for those aiming for multi-year BTC upside BTC may test the $56k-$34k demand zone soon. For long-term holders, this is a prime accumulation area before the next bull cycle. Stay patient and strategic – $1M BTC dreams require discipline, not FOMO. Guys, don’t judge me: I’m a Bitcoin lover too. I’m just reading what the chart is showing. Even if the short-term looks bearish, I see the setup for a massive long-term move toward $1M 🚀 NFA & DYOR
Short
by CryptoPatel
HTF ChoCH Alert: BTC’s Macro Bias Is Still BearishHTF ChoCH Alert: BTC’s Macro Bias Is Still Bearish BTC is still following clean HTF bearish order-flow (LH → LL → BOS). The current push up is just a premium retracement, driven by internal liquidity grabs. Price is reaching for the premium FVG at 99,866–101,184, the next clear draw on liquidity and a prime reversal zone. Below 107,500 bias stays bearish (Bearish Invalidation / HTF ChoCH) Expect: BSL sweep → FVG fill → mitigation → sell-side continuation. ICT view: Market is simply rebalancing inefficiency before delivering lower. NFA & DYOR
Short
by CryptoPatel
$TRUMP TOKEN: A 92% MASSACRE IN JUST 316 DAYS$TRUMP TOKEN: A 92% MASSACRE IN JUST 316 DAYS: WHAT THE HELL JUST HAPPENED? 😡 Let’s talk about the BRUTAL reality of celebrity/president tokens: THE NUMBERS DON’T LIE: 🔹 ATH: $79.70 (January 19, 2025) 🔹 TODAY: $5.69 (December 1, 2025) 🔹 DOWN 92.58% IN LESS THAN A YEAR 316 DAYS: Not even a full year and your portfolio is DESTROYED. THE REALITY CHECK: If you bought $1,000 at ATH → Your bag is worth only ~$71 TODAY 💀 WHO PROFITED? ✅ Early insiders who dumped on retail ✅ VCs who got free or discounted tokens ✅ Influencers who promoted and then silently exited WHO GOT REKT? ❌ Retail investors who FOMO’d at the top ❌ Newbies who trusted the hype ❌ Anyone who didn’t take profits MY REPEATED WARNING: NEVER INVEST IN INFLUENCER/PRESIDENT TOKENS! This is exactly why I keep saying: 🔹 Don’t chase celebrity coins 🔹 Your money is HARD-EARNED 🔹 These are pump & dump schemes disguised as “movements” Is this crypto or a 3rd class memecoin casino? YOU DECIDE. LESSON: Hype doesn’t pay bills. Due diligence does. STAY SAFE. TRADE SMART. PROTECT YOUR CAPITAL. NFA & DYOR
Short
by CryptoPatel
PAGEIND - BEARS READY TO TEAR JOCKEY DOWN TO 20% FALL???YES!!!!! Chart patterns made me think of the above titled opinion. REASONS FOR MY IDEA 1.MONTHLY CANDLE BREAKDOWN WITH GOOD VOLUME 2. OCT 2022 Highs not tested even during 2024 bullish phase shows weakness 3. Weekly candle too shows a voluminous breakdown as shown below 4. 3 BLACK CROWS pattern in the daily time frame recently adds to the woes 5. I will mostly wait for the white trendline break for the entry.(though it is now at the resistance trendline , recent bullish candles may delay the down rally) 6. Given the sl , target are extreme levels.....will update after the white line breakdown. LET THE MARKET DECIDE.....WE WILL WAIT AND WATCH!!!!! This is just my opinion.....not a tip nor advice. THANK YOU!!!!!!
NSE:PAGEINDShort
by mmjimm
BEL – Trendline Breakdown & Supply Zone Rejection | Bearish SetuBEL has rejected strongly from the higher-timeframe supply zone around ₹425–₹430, followed by a clean trendline breakdown. This breakdown signals weakening bullish momentum and opens the door for a deeper correction. 📌 Key Highlights Strong rejection from the major supply zone. Clear trendline break, indicating a shift in structure. Price currently hovering near ₹408–₹410 support. Expecting a pullback before continuation. 🎯 Entry Plan (Breakdown + Retest) 🔽 Preferred Entry Model 1. Breakdown: Price breaks below the minor structure at ₹406–₹408 with a strong bearish candle. 2. Retest: Wait for price to pull back toward ₹408–₹410 (previous support → now resistance) OR a retest of the broken trendline. 3. Entry Trigger: Enter short only after a bearish rejection (wick rejections / bearish engulfing / breakdown of retest low). 📍 Ideal Entry Zone: ₹400 – ₹403 🎯 Targets TP1: ₹395 TP2: ₹382 Final Target (HTF Demand): ₹360 – ₹365 ❌ Invalidation Setup invalid if BEL reclaims ₹425 and sustains above the supply zone. 📈 Bias Bearish as long as the price stays below the breakdown zone and the trendline.
NSE:BELShort
by Scalper_San
STOP SCROLLING: BITCOIN TECHNICAL ALERT (3-Year Support Break)🚨 STOP SCROLLING: BITCOIN TECHNICAL ALERT (3-Year Support Break) 🚨 Bitcoin has broken a long-term support channel that’s been respected since 2022. That multi-year channel support was around $108,000 and I warned there to protect capital and trade safe. Result: Breakdown. ✅ BTC dumped over -25% ✅ Now trading near $83,000 Structure Still Bearish Trend remains bearish unless BTC reclaims the broken channel. A Relief bounce is still possible toward: $93,000 / $98,000 But treat that as corrective unless structure flips. Major Support: $69,000 is a critical level, Last bull-run ATH and strong demand zone. Watch it closely. If This Channel Break Plays Out Fully… As a Technical Analyst, I can’t sugar-coat the math. When a multi-year channel breaks, the natural downside targets usually align with major Fibonacci retracement zones: Deep Retracement Targets (Bear Case) 0.5 Fib: $44,193 (~60% probability) 0.618 Fib: $34,500 (~30% probability) 0.718 Fib: $24,250 (~10% probability) These aren’t fantasies. They’re standard TA outcomes after this type of structural failure. Important: This Is Not Panic I’m not here to spread fear. I’m here to state what the chart is objectively signaling. Markets don’t move on hope, They move on structure, liquidity, and trend mechanics. If price goes into that 0.5–0.718 Fib zone, it would be painful short-term… but also a once-in-cycle accumulation window for long-term holders. CryptoPatel Note: Believe me, I want BTC at $1M+ in the future. But wanting isn’t analysis. My job is to map both paths: bullish and bearish, Before they happen. Save this post. Mark the levels. Trade safe. Because when a 3-year support breaks, the market doesn’t whisper, it screams. NFA & DYOR
Short
by CryptoPatel
$PEPE BREAKDOWN: 70% Dump? SMC Says YESCRYPTOCAP:PEPE BREAKDOWN (READ THIS BEFORE YOU SCROLL): 70% Dump? SMC Says YES Price has broken the long-term support at $0.0000059 and that level is now strong resistance. Until PEPE reclaims this zone, trend stays bearish. SMC Structure HTF Demand swept + Weekly FVG filled Liquidity taken below multi-month lows Support → Resistance flip at $0.0000059 Below this = continuation sell-side liquidity hunt Downside Expectation If price rejects from the new resistance, PEPE still has room for 60–70% downside. That drop would hit the HTF Accumulation Zone → $0.00000178 (High-value area where Smart Money positions.) Fractal Outlook Last time PEPE entered this structure → 4650% bull run. Same HTF pattern forming again. If PEPE drops 40%–70%, that’s where long-term money accumulates for the next big move. Reclaim $0.0000059 = bullish reversal Stay below = deeper accumulation incoming HTF structure is not bearish forever, It’s preparing the next expansion. Watch the reclaim. NFA & DYOR
Short
by CryptoPatel
#ETHEREUM Technical Update: $3000 Hit Exactly as Mapped#ETHEREUM Technical Update: $3000 Hit Exactly as Mapped CRYPTOCAP:ETH has tapped the $3000 zone, exactly as projected when price was breaking down from the $4000 bearish breakdown + retest. We’re now ~30% down from the short-entry region. If you shorted, you booked heavy profits. If you didn’t, at least you avoided longing the top above $4000+ This is where the prime accumulation zone begins. Key levels to watch: 🔵 $3000: First accumulation zone + bullish OB (Possible bounce reaction from here.) 🔽 Next support: $2400 Major Accumulation Zones: 0.5 FIB: ~$2621 0.618 FIB: ~$2255 If ETH sweeps into these FIB/FVG pockets, that becomes the high-discount, prime long-term accumulation zone. Macro view unchanged: Long-term Target: $10K–$15K Stay patient. Stick to structure. Accumulate smart, not emotional. NFA & DYOR
INDEX:ETHUSDShort
by CryptoPatel
#BITCOIN UPDATE: Structure Still Playing Out Exactly as Mapped#BITCOIN Technical Update: Structure Still Playing Out Exactly as Mapped CRYPTOCAP:BTC has now broken below the $90K zone, a level not seen since 22 April 2025, Seven months ago. I told you this when Bitcoin was rejecting $115K, and we’re now ~22% down from that zone. Price is following the structure with precision. Key observations: 🔻 BTC currently sits on the 0.618 FIB: High-probability bounce zone. A relief move into the $98K–$100K region is very possible in the coming days. 🔼 Upside FVG: ~$98,000 If price pushes deeper first, this FVG becomes the ideal tap before the next leg down. This is why I said: don’t short here, Risk-reward is terrible at the lows. A sweep toward $98K would offer a clean, low-risk short entry. 🔽 Downside FVG: ~$88,474: This zone can trigger a strong reaction and potential bounce. Market structure remains intact: Below $107.5K → macro bearish leg still active Above $107.5K → invalidation + path toward new ATH reopens Price continues to respect levels. Charts > emotions. Structure > noise. NFA & DYOR
Short
by CryptoPatel
1
bearish retest I warned on Oct31 played out EXACTLY as projectedThe bearish retest I warned about on Oct 31 played out EXACTLY as projected I clearly said CRYPTOCAP:BTC would dump again after filling the FVG at $106K–$107K and that’s exactly what happened. BTC dropped from $107K → $98K (-9%) and from our retest entry, we’re now 15% in profit. Hope you enjoyed the analysis and booked gains. Now watch the 0.5–0.618 FIB zone closely. ✔️ If it holds → strong bounce possible ❌ If it fails → BTC could slide below $80K I’ve been warning about this dump since BTC was above $120K+. Structure always wins. NFA & DYOR
Short
by CryptoPatel
1
BTC Breakdown Confirmed, Structure Flipped Bearish: Next $88610?BTC Breakdown Confirmed, Structure Flipped Bearish: Next Stop $83,610? Support is broken and the structure confirms a clear bearish shift. #Bitcoin failed to reclaim the Fair Value Gap (FVG) zone, turning it into strong resistance. High chances CRYPTOCAP:BTC could fill the FVG and continue the downside move toward $83,610. Bulls remain trapped unless price reclaims $116,400, the bearish invalidation zone. Trend bias remains bearish. Liquidity targets below are in play. NFa & DYOR
Short
by CryptoPatel
BITCOIN TECH UPDATE: BEARISH DOMINATES MUST READ🚨 BTC TECH UPDATE: BEARISH DOMINATES MUST READ 🚨 CRYPTOCAP:BTC is down 14% from my bearish short at $115,000 retest. ✅ Those who shorted, well played. ✅ Those who avoided longing at the top, capital saved. Price Action: #BITCOIN hit 1st support and broke below, trend remains bearish. Next target: $94,000. Short-Term Relief: Expect a bounce toward $105,000–$108,000 (retest + FVG zone) before the next leg down. Longer-Term: $94,000 key decision zone → potential drop to $76,000 if bearish momentum continues. Will update with precision once $94k is reached. Sentiment: Bearish as forecasted from $115k. Bullish Trigger: If BTC breaks $111,500 with HTF candle close, bullish scenario activates → potential ATH toward $150,000. Trade smart. Watch levels. Manage risk. Your move: Ride the bearish wave or wait for the relief rally? NFA & DYOR
Short
by CryptoPatel
the set up im gonna call this episode the set up check the trendline check the overbought the same scenario same as 2021 i still say idk about the alt season maybe i have zero knowledge but slowly slowly gotta get ready for the bears to take over also calm down we still have new years eve. P.S: the only play out i gave for the altseason was 2 3 posts before you can check it out on how i think it will be and where will be bitcoin located at , at that time. stay focused stay sharp sina
BINANCE:BTCUSDShort
by Sinadarvishzadeh
$LINEA WARNING: Bearish Pressure + Accumulation Opportunity Ahea$LINEA WARNING: Bearish Pressure + Accumulation Opportunity Ahead! Chart Analysis Recap: Previous exit signal: $0.025 → #Linea is now ~50% down ✅ confirms chart-based strategy. Current trend: Super bearish; expecting further downside 20%-40% before the next upward leg. Long-Term Potential: @Linea.eth could give 10x returns, targeting $0.1–$0.2, but success depends on smart entry points. Key Strategy: Ideal accumulation zone: below $0.01 for long-term holders. Trade smart, enter on hard dips and manage risk. Takeaway: Patience + technical discipline = positioning for potential massive upside. NFa & DYOR
Short
by CryptoPatel
EMA Ribbon - Trend Strength & Reversal insight🧭 1. Overview The EMA Ribbon is a set of multiple Exponential Moving Averages (EMAs) layered together to visualize the trend strength, direction, and possible reversals. It helps traders identify when the market is trending strongly or losing momentum. In this chart, • Yellow lines = Short-term EMAs (react quickly to price) • White lines = Long-term EMAs (show overall market direction) When used together, they form a ribbon-like structure that acts as both dynamic support and resistance. ⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻ 📊 2. EMA Ribbon on Chart • When the ribbon expands, it shows trend strength increasing — momentum is strong. • When the ribbon contracts (becomes narrow), momentum is cooling, often leading to consolidation or reversal. • The slope and crossover behavior of short and long EMAs reveal bullish or bearish momentum. ⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻ 🟢 3. Bullish Momentum When short-term EMAs (yellow) stay above the long-term EMAs (white): • EMA ribbon slopes upward → confirms an ongoing uptrend. • Ribbon acts as a dynamic support zone — price often bounces from it. • Indicates strong buying pressure and trend continuation. • The wider the ribbon, the stronger the bullish momentum. ⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻ 🔴 4. Bearish Momentum When short-term EMAs (yellow) fall below long-term EMAs (white): • EMA ribbon slopes downward → confirms a downtrend. • Ribbon acts as a dynamic resistance zone — price struggles to break above it. • Indicates strong selling pressure and bearish control. • Ribbon expansion during a downtrend suggests momentum strength from sellers ⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻ 📘 5. Summary ✅ Bullish Phase: Short EMAs above long EMAs → strong uptrend & support zone. ❌ Bearish Phase: Short EMAs below long EMAs → strong downtrend & resistance zone. ⚙️ Neutral / Reversal Phase: EMAs narrow together → momentum cooling, await breakout. The EMA Ribbon is not just a visual trend indicator — it’s a dynamic momentum tool that adapts with price, helping traders identify both trend continuation and early reversal signs. ____________________________________________________________ ⚠️ Disclaimer 📘 For educational purposes only. 🙅 Not SEBI registered. ❌ Not a buy/sell recommendation. 🧠 Purely a learning resource. 📊 Not Financial Advice.
BINANCE:BTCUSDEducation
by MarketAlgoBot
Rising Wedge Chart Pattern 🔎 Overview The Rising Wedge Pattern is a bearish reversal setup that forms when price moves within a narrowing upward channel — creating higher highs and higher lows that converge toward the top. It often appears after an uptrend, signaling that bullish momentum is weakening and sellers may soon take control. As price rises inside the wedge, volume usually decreases, showing fading buyer strength before a potential breakdown . ____________________________________________________________ 📔 Concept • The pattern develops between two converging trendlines sloping upward. • Each new swing high becomes smaller, showing exhaustion in buyers. • A break below the lower wedge line confirms the bearish reversal. • The expected move often equals the height of the wedge projected downward. ____________________________________________________________ 📊 Chart Explanation • Pattern Name → Rising Wedge Chart Pattern • Resistance Zone → Acts as seller territory where buyers begin losing strength. • Support Zone → Serves as the final defense; breakdown confirms bearish trend reversal. • Consolidation Phase → Price compresses within the wedge before breakdown, showing indecision. • Breakdown Confirmation → When price closes below the lower wedge line, it confirms bearish reversal. • Retest After Breakdown → Price often retests the wedge from below before continuing downward. • Summary → Rising Wedge is a bearish pattern of converging higher highs & higher lows, often signaling trend reversal from the upside. ____________________________________________________________ 👀 Observation The Rising Wedge shows weakening bullish pressure as the market climbs with smaller candles and lower volume. Breakout traders monitor this setup for early reversal opportunities. The most reliable setups occur near resistance zones or after extended rallies. ____________________________________________________________ 💡 Conclusion A confirmed breakdown below the wedge structure indicates sellers gaining control. Using proper stop-loss, target projection, and volume confirmation can improve accuracy when trading this reversal formation. ____________________________________________________________ ⚠️ Disclaimer 📘 For educational purposes only. 🙅 Not SEBI registered. ❌ Not a buy/sell recommendation. 🧠 Purely a learning resource. 📊 Not Financial Advice.
BINANCE:BTCUSDEducation
by MarketAlgoBot
1
Bearish Engulfing Pattern🔎 Overview The Bearish Engulfing Pattern is a strong two-candle reversal formation that signals a potential shift from an uptrend to a downtrend. It occurs when a small bullish (green) candle is immediately followed by a large bearish (red) candle that completely engulfs the prior candle’s body. This shows a clear shift in market psychology — buyers initially push the price higher, but sellers step in with force and erase those gains, marking the start of bearish momentum. ____________________________________________________________ 📔 Concept A Bearish Engulfing occurs when: 1️⃣ The first candle is a small green candle continuing the uptrend. 2️⃣ The next candle is a large red candle whose body completely engulfs the green candle’s body. 3️⃣ This pattern signals that sellers have regained control after buyer exhaustion. ____________________________________________________________ 📌 How to Use ✅ Validation → The candle must close below the open of the red candle to confirm bearish reversal. ❌ Devalidation → If price closes above the close of the red candle before validation, the signal fails. This structured confirmation helps filter false breakouts and define clear risk levels. ____________________________________________________________ 📊 Chart Explanation • Symbol → NSE:MGL • Timeframe → 1D • On 15 Oct 2025 , a small green candle formed, continuing the uptrend. • On 16 Oct 2025 , a large red candle engulfed the previous green body — confirming the Bearish Engulfing Pattern . • On 17 Oct 2025 , price broke down further, validating the bearish reversal. This sequence highlights how quickly market sentiment shifted from bullish to bearish control. ____________________________________________________________ 👀 Observation • The Bearish Engulfing is most reliable near swing highs or resistance zones. • High volume on the engulfing candle strengthens the reversal signal. • Combining this pattern with confirmation tools like RSI, Supertrend, or Moving Averages improves accuracy. ____________________________________________________________ 💡 Conclusion The Bearish Engulfing Pattern marks a clear shift in control from buyers to sellers. Once validated, it indicates a high-probability reversal setup with defined stop-lose and target zones based on structure or risk-reward multiples. ___________________________________________________________ ⚠️ Disclaimer 📘 For educational purposes only. 🙅 Not SEBI registered. ❌ Not a buy/sell recommendation. 🧠 Purely a learning resource. 📊 Not Financial Advice.
NSE:MGLEducation
by MarketAlgoBot
Bitcoin LTF Analysis & Market OutlookBitcoin LTF Analysis & Market Outlook #Bitcoin still doesn’t look strong on LTF, and I’m expecting some more downside movement in the coming days. So if you’re holding high leverage longs, manage them carefully and always use strict stop loss. Here’s the key structure to watch: Resistance 1: $116,000 If CRYPTOCAP:BTC fails to break and hold above this level, momentum stays weak and we could revisit the $100,000 zone again. Resistance 2: $122,500 Only a confirmed breakout above this level can trigger the next leg toward a new ATH around $150,000. Until then, play defense. Avoid emotional trades, don’t gamble with your hard-earned money, and only take entries backed by clear confluence, strategy, and discipline. Remember: The market always rewards patience, not greed. Stay alert, follow structure, and let the setup come to you.
Short
by CryptoPatel
Head and Shoulders - Bearish Reversal Setup🔎Overview The Head and Shoulders Pattern is a classic bearish reversal formation that signals a potential change in trend from uptrend to downtrend . It is formed by three peaks: - Left Shoulder → Price rises, forms a peak, then retraces. - Head → Price moves higher than the left shoulder, creating the tallest peak, then falls back. - Right Shoulder → Price rises again but fails to surpass the head, showing loss of momentum. - Neckline → A line drawn through the two troughs between the shoulders and the head. A breakdown below the neckline confirms bearish sentiment. This pattern reflects weakening buying pressure and strengthening selling interest, often appearing at the end of strong rallies. ____________________________________________________________ 📌 How to Use • ✅ Pattern Confirmed → When candle closes below the Validation Line • ❌ Pattern Invalid → If candle closes above the Devalidation Line (Failure Protection). • Protects against false signals & ensures structured risk management. ____________________________________________________________ 📊 Chart Explanation • Symbol → NSE:NIFTY • Timeframe → 30m • Left Shoulder Peak - 24970.30 • Head (Highest Peak) - 25448.95 • Right Shoulder Peak - 24900.80 • Neckline → Drawn by connecting the two troughs between shoulders and head. • Validation Level → 24,585.75 → Close below = Pattern Confirmed . • Devalidation Level → 24,910.65 → Close above = Pattern Invalid. ____________________________________________________________ 👀 Observations - The right shoulder often appears weaker, highlighting reduced buyer confidence. - Once the neckline is tested multiple times, probability of a breakdown increases. - Volume generally decreases during formation and expands during breakdown, strengthening confirmation. - This setup helps traders anticipate major reversals rather than chasing late entries. - Head and Shoulders is widely followed, making it self-fulfilling as many traders act on the same signal. ____________________________________________________________ 💡 Why It Matters Head & Shoulders is one of the most reliable reversal patterns, giving clear validation/devalidation levels for structured risk management. It helps avoid false breakouts and provides traders with predefined stop-loss and target zones. ____________________________________________________________ ✅ Conclusion Breakdown below the Validation Line confirms bearish reversal bias. Combine this with broader market context, volume confirmation, and disciplined position sizing for effective trading decisions. ____________________________________________________________ ⚠️ Disclaimer 📘 For educational purposes only. 🙅 Not SEBI registered. ❌ Not a buy/sell recommendation. 🧠 Purely a learning resource. 📊 Not Financial Advice.
NSE:NIFTYEducation
by MarketAlgoBot
2
Dark Cloud Cover - Bullish Pattern🔎 Intro / Overview The Dark Cloud Cover is a bearish reversal candlestick pattern that appears after an uptrend . It forms when a strong bullish candle is followed by a bearish candle that opens above the previous high but closes deep into the prior candle’s body, usually below its midpoint. This signals that buyers are losing control and sellers are stepping in at the swing high, hinting at a possible reversal. ___________________________________________________________ 📌 How to Use - Step 1: Identify a strong bullish candle. - Step 2: The next candle must open above the prior high but close below the midpoint → confirmation of bearish pressure. - Step 3: Must appear at/near a swing high. - Validation → Candle closes below the validation line. - Devalidation → Candle closes above the devalidation line before validation. ___________________________________________________________ 🎯 Trading Plan - After pattern confirmation. - Validation Line → Pattern Low. - Devalidation Line → Swing High. - Rule: • If price closes below the validation line → Price enters Reversal Confirmation Zone . • If price closes above the devalidation line (before validation) → Price enters Failure Zone . This protects against false signals and ensures structured risk management. ___________________________________________________________ 📊 Chart Explanation Symbol: NSE:SBIN | Timeframe: 15 min 📌 On 26 Sep · 14:45 , the Dark Cloud Cover pattern was confirmed. - Validation Level: 854.30 → If price closes below, pattern is validated. - Devalidation Level: 858.10 → If price closes above (before validation), pattern is invalidated. ___________________________________________________________ 👀 Observation - Most effective after strong uptrends. - Works best when formed at clear swing highs. - Validation/Devalidation rules filter false signals. ___________________________________________________________ ❗ Why It Matters? - Provides a clear bearish reversal signal at swing highs. - Rule-based entry helps traders avoid emotional decisions. - Enhances discipline by defining zones for confirmation and failure. ___________________________________________________________ 🎯 Conclusion The Dark Cloud Cover Pattern is a reliable bearish reversal tool when combined with validation and devalidation rules. It helps traders confirm trend reversal at the right spots while protecting against false signals. 🔥 Patterns don’t predict. Rules protect. 🚀 ___________________________________________________________ ⚠️ Disclaimer 📘 For educational purposes only. 🙅 Not SEBI registered. ❌ Not a buy/sell recommendation. 🧠 Purely a learning resource. 📊 Not Financial Advice.
NSE:SBINEducation
by MarketAlgoBot