1. The Dusk Star

1. Technical feature
   (1) It occurs in an upward trend;
   (2) It consists of three candlestick charts: the first is a green line (the positive line), the second is a short high open green line, red line or a cross line, and the third is a red line (the negative line);
   (3) The third red entity transitions into the first green entity.

2. Technical meaning
   The Dusk Star is the peak-reversal signal. Traders better sell out as the market conveys a bearish trend.

II. Dark Clouds Covering the Top

1. Technical features
   (1) It appears in an upward trend;
   (2) It consists of two candlestick charts, one green and one red;
   (3) It firstly shows a long green candlestick, then appears a long red candlestick with the jumping-high price;
   (4) The red entity penetrates into less than half of the green entity.

2. Technical meaning
   The Dark Clouds Covering the Top is the peak-reversal signal. Traders better sell out as the market conveys a bearish trend.

III. Rounding Top

1. Technical features
   (1) It appears in an upward or side-way finishing trend;
   (2) It shows a long candlestick at first, and then a series of short red and green candlesticks forming an arc top.

2. Technical meaning
   The Rounding Top is the peak-reversal signal. Traders better sell out as the market conveys a bearish trend.

IV. Three Crows

(1) It appears in an upward trend;
(2) It consists of three long red candlesticks with a jumping-high opening price.

1. Technical meaning
   The Three Crows is the peak-reversal signal. It is suggested traders sell out as the following market conveys a bearish trend.

V. Unstoppable Decline

1. Technical features
   (1) It appears in a downward trend;
   (2) It features many red candlesticks mixed with several short green candlesticks;
   (3) The candlestick charts are arranged in a downward tilt state.

2. Technical meaning
   The Unstoppable Decline is a bearish signal, so it is suggested that traders sell out.

VI. The Side Air Point

1. Technical features
   (1) It appears in a downward trend;
   (2) It consists of several candlestick charts;
   (3) It firstly shows a long red candlestick with a relatively long lower shadow candlestick;
   (4) The coin price, after a short rebounded period, falls below the last lower shadow candlestick at the next position.

2. Technical meaning
   The Side Air Point is a bearish signal, and the following market conveys a bearish trend.

VII. Red-Green-Red Signal

1. Technical features
   (1) It will appear either in an upward or downward trend;
   (2) It consists of two longer red candlesticks and one shorter green candlestick;
   (3) The green candlestick lies right between the two red candlesticks.

2. Technical meaning
   (1) The Red-Green-Red Signal connotes the peak reversal and suggests traders sell out;
   (2) The Red-Green-Red Signal appears mainly in a downward trend but rarely in an upward one;
   (3) It remains bearish in a downward trend.

VIII. Brief Summary

This issue explains the common falling combinations of candlestick charts from the technical features to the signal meaning. However, in practical application, traders need flexible judgment, and mustn’t mechanically copy the theory. If traders want to raise their winning rate, they’d better integrate technical analysis with other strategies and indicators, and make decisions under multiple verifications.
With what you have learned in practice, you can play in the futures market with ease. Please go to the Gate.io Futures platform and click Registration to start your futures journey.

Disclaimer
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constitute any investment advice and is not responsible for any of your investments. Contents about technical analysis, market judgment, trading skills, trader sharing and so on may involve potential risks, investment variables and uncertainties. This article does not provide or imply any opportunity to guarantee returns.