6 Bearish Candle Confirmations at Supply Zone – Beginner Breakdown
All six setups share the same structure: price drops from a supply zone, forms a base , then pulls back up into the supply zone. You're looking for a specific candlestick confirmation pattern at supply before entering short. The difference is which candle pattern triggers your sell.
1. Engulfing Entry
Price returns to supply and a large bearish (red) candle completely engulfs the previous smaller bullish candle. The red candle's body covers the entire green candle. This shows sellers violently overpowered buyers in one candle — strong, aggressive rejection.
2. Hammer Entry (Inverted Hammer)
At the supply zone, an inverted hammer forms — a candle with a long upper wick and small body near the bottom. The long wick above means buyers tried to push higher but were rejected hard. Sellers slammed price back down within that single candle.
3. Harami Entry
A small candle forms completely inside the body of the previous larger candle at supply. The small candle shows indecision — momentum is dying. Buyers are running out of steam at resistance, signaling sellers are about to take over.
4. Double Doji Entry
Two doji candles appear at the supply zone — candles with tiny bodies and roughly equal wicks top and bottom. One doji means indecision; two in a row means the market is completely stalling at supply. This stalling almost always resolves with a drop since buyers clearly can't push through.
5. Pin Bar Entry
A classic pin bar at supply — long upper wick poking into the zone with a small body at the bottom. Similar to the inverted hammer but often with an even longer wick relative to the body. The wick "pins" into supply and gets violently rejected, showing sellers are defending that level aggressively.
6. Double Hammer Entry
Two inverted hammers (or shooting stars) appear back-to-back at the supply zone. If one rejection wick is strong, two is even stronger. Repeated failure to break above supply confirms sellers are in full control. Higher probability entry than a single hammer.
Key takeaway: Never sell blindly when price reaches a supply zone. Wait for one of these six candlestick patterns to appear at the zone as your confirmation . The pattern is your proof that sellers have shown up. No confirmation = no trade.
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