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Bearish Pattern Evolution (7 educational charts)

KEEP IT SIMPLE.......a downtrend is a downtrend until its over.

  • IF a stock / index is in a downtrend, continue looking for bearish patterns UNTIL proven otherwise.

  • A trend can be ascertained by using simple trendlines or moving averages.

  • Untill you get back above the 200MA...forget about BULL patterns, keep drawing in Bear patterns to resistance.

The following charts are the SAME stock showing the evolution of impending Bearish action.

Chart #1 - getting tired

Chart #2 - start looking for Bear Patterns OR failed Bull patterns

Chart #3 - Draw in the measurements of the Bear pattern

Chart #4 - Clear the chart and put your trend lines on now that the stock has rolled over...ALWAYS watch for rising wedges back to upper trend line resistance.

Chart #5 - A trend is a trend until its OVER !!

Chart #6 - Clear chart again....look for NEXT Bear pattern, as the longer term trend remains DOWN.

Chart #7 - Draw in your downtrend line again and look for Bear patterns to the upper trendline resistance