There are currently two trading platforms offering bearish chart pattern scanning and screening. Automatic Pattern Recognition with TradingView Scanning for Bearish Chart Patterns Now, a chart with any bear pattern formations will be clearly marked. Go to TradingView and click Indicators > Technicals > Patterns. You can automatically identify bearish patterns using TradingView. Bearish Chart PatternĪll statistics in this article are sourced with permission from Tom Bulkowski in his excellent book The Encyclopedia of Chart Patterns (Wiley 2021) How to Automatically Identify Bearish Chart Patterns? For example, the Inverted Cup and Handle pattern has a 58% chance of a price decline (success rate), and the average price decrease is -17%. This table shows the bearish pattern success rates (probability of a price decrease) and the average price decrease after emerging through pattern support. Bullish Chart Pattern Reliability & Profitability Is the megaphone pattern bullish or bearish?ĭue to the stock market’s inherent bull bias, short-selling using bear patterns is risky, and rewards and profits are not as large as using the most bullish chart patterns.
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