Bearish Tower Top Candlestick Pattern

The Bearish Tower Top candlestick pattern is a bearish reversal candlestick pattern. Bearish Tower Top candlestick patterns typically develop at the end of an extended run in a stock's share price.

This candlestick pattern consists of a series of candlesticks, unlike other candlestick patterns which are mostly single candlestick patterns. Therefore, a Bearish Tower Top candlestick pattern is identified through a series of observations since the candlestick pattern takes several trading periods for it to develop.

When a tall green candlestick pattern develops at the end of an extended run-up in the stock's share price, and then the next couple of candlesticks fail to push higher than the close of the tall green candlestick, you may be witnessing the development of a Bearish Tower Top candlestick pattern in process.

Requirements

These are the requirements for a Bearish Tower Top candlestick pattern.

• There are 2 tall candlesticks separated by 2-5 candlesticks with smaller real bodies than the 2 tall candlesticks on the left and right borders of the pattern
  • The 1st tall candlestick usually has a green colored real body, but it can also be red colored
  • The 2nd tall candlestick's real body is usually red colored, but can also be green in very volatile markets
• The real bodies of the 2 tall candlesticks on the left and right borders of the pattern approximate each other in size

Characteristics & Observations

These are some of the trading and investing characteristics for Bearish Tower Top candlestick patterns, as well as some of my personal observations I have developed over the years......

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