The term “bearish” is used to describe that a person’s, or group’s, outlook on an asset is negative (i.e., that the asset will fall in value). For example, Jane is “bearish” on the Swiss Franc, which means she thinks its value will go down in price.
The rectangle graphical pattern serves to confirm the direction of the existing trend. The bearish rectangle is formed in a downtrend and indicates high probability for the further decrease in the asset price.
The market must be in clearly defined uptrend. The first candle is bullish. The second candle is bearish. The bearish candle engulfs the previous candle’s body. The size of the candle being engulfed doesn’t matter. Ignore the wicks. An even stronger signal occurs when the bearish candle engulfs the bodies of two or three previous [...]
A market, which is characterized by falling prices (quotes).