On 15 February, Swing Trading Blog | What are the best models of candlestick for shorting Stocks?

Written on 15/02/2008 08: 52 by Craig

If you could only trade 3 candlesticks for shorting stocks, what would they be?

I asked this question by email and it me did not take very long to find an answer. I trade again and again the same candlestick patterns!

Here are my top 3 bearish candlesticks:

It's my favorite of all time on the short side. The key of this candlestick pattern is in having a long tail and a small real body. A rally to a major resistance area and an increase in the volume of the previous day are other factors to consider.

I want to see this model after a very quick to move backwards against the resistance. Give it an added value if it is located just beside a trendline down. I like the first spark plug to be significantly smaller than the second.

Lately, it seems that this model becomes more reliable. I love how this model retains the other traders on the wrong side of a move. It is a clear indication that the bulls have lost control. I want to see a deep penetration in this first candle.

I don't think that chandeliers are the Holy Grail for stock trading. In fact, I think that they are virtually worthless without other factors on the table to save the implications of these.

Factors such as...

A movement against a strong downward trend.A multiple "up-to-date" resistance rally.

So, what are your favorite candle holders to trade on the short side? Those that you find yourself trading more often?