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To evaluate the performance of the pattern in your stock exchange within the context of other global markets, please refer to the table below. Locate your stock market to see its ranking among others. This will provide insights into the pattern’s strength and reliability, aiding you in your buying and selling decisions.
BEARISH ONE BLACK CROW
Definition
This pattern appears in an uptrend and includes a white candlestick followed by a black candlestick. The black candlestick opens below the previous day’s close and closes below its own opening price. This pattern is similar to the Bearish Harami, with the key difference being that the second day’s close is lower, preventing the black body from being engulfed by the preceding white body.
Recognition Criteria
1. The market is currently defined by a dominant upward trend.
2. A white body is observed on the first day.
3. The black candlestick that forms on the second day opens below the previous day’s close and closes below the previous day’s open.
Pattern Requirements and Flexibility
The Bearish One Black Crow pattern features a white candlestick followed by a black candlestick. Both candlesticks should not be short in length. On the second day, the candlestick opens below the previous day’s close and closes below the first day’s opening price.
Trader’s Behavior
An uptrend is underway, bolstered by the strong white candlestick on the first day, which amplifies the existing bullish sentiment. However, on the second day, the market opens lower than the previous day’s close, causing concern among bullish traders. As prices continue to fall, the close drops below the previous day’s open, signaling potential damage to the uptrend. If this downward movement persists in the following days, it may lead to a major trend reversal.
Sell/Stop-Loss Levels
The confirmation level is determined by the last close. For confirmation, prices should fall below this level.
The stop-loss level is defined as the last high. If, following the bearish signal, prices rise instead of falling and either close or make two consecutive daily highs above the stop-loss level, without detecting any bullish pattern, the stop-loss is triggered.