TA School

Bear Sash Pattern

Master the Bear Sash, a bearish continuation pattern that confirms seller dominance during an active downtrend.

advanced level10 min read

Interactive Model

Interactive Visual Walkthrough

Bear Sash Continuation

Step 1 of 4
Bearish Trend Context

The asset moves lower from $110 to $100 over Day 1 and Day 2, establishing a clean, structured downtrend.

Why it matters: Continuation patterns are only valid within an active, existing trend. We must establish selling dominance first.

What is a Bear Sash Pattern?

The Bear Sash is a two-candle bearish continuation pattern that appears in an active downtrendDowntrendA market direction characterized by a sequence of lower highs and lower lows.Read full glossary entry →. It is characterized by a temporary bullish candle followed by a strong bearish candle that opens at or near the opening level of the first candle, creating a visual "sash" shape. It indicates that the counter-trendTrendThe general direction in which a security or market is moving over time.Read full glossary entry → buyers have been completely absorbed and that the primary trendTrendThe general direction in which a security or market is moving over time.Read full glossary entry → is set to continue.

Pattern Structure

To identify a valid Bear Sash:

  1. Trend Context: The market must be in an established downtrendDowntrendA market direction characterized by a sequence of lower highs and lower lows.Read full glossary entry →.
  2. First Candle: A bullish (green) candle that forms as a minor pullbackPullbackA temporary price pause or moderate retracement against the primary trend direction.Read full glossary entry →.
  3. Second Candle: A strong bearish (red) candle. It must open at or near the opening price of the first candle (gapping down from the previous close) and close low in its range.
  4. Visual Contrast: The two candles appear side-by-side with opposing bodies, resembling a sash.

Market Psychology

  • The PullbackPullbackA temporary price pause or moderate retracement against the primary trend direction.Read full glossary entry →: During a downtrend, some traders cover shorts or take profits, causing a green day. Buyers try to capitalize, driving prices higher.
  • The GapGapAn area on a chart where no trading activity took place, visible as an empty space between two consecutive candles.Read full glossary entry → Down: The next session opens with a significant gapGapAn area on a chart where no trading activity took place, visible as an empty space between two consecutive candles.Read full glossary entry → down, right back to where the previous session opened. This reveals that supply remains exceptionally high.
  • Selling Momentum: The gap-down shocks the buyers. Aggressive selling pushes the price down throughout the session, creating a large red body and forcing buyers to liquidate.

Trading Setup

  • Entry: Enter short upon the close of the second (bearish) candle, or wait for the next candle to break below its low to confirm momentum.
  • Stop-Loss: Place the stop-loss just above the high of the first (bullish) candle. A break above this level indicates that the pullback has turned into a deeper trend reversal.
  • Take Profit: Project targets based on the previous swing low or key supportSupportA price level where buying pressure is strong enough to prevent the price from falling further. It represents a "floor" on the chart.Read full glossary entry → zones, maintaining a risk-to-reward ratioRisk-to-Reward RatioA measure used to compare the potential profit of a trade against its potential loss. A ratio of 1:2 means the trader is risking $1 to potentially mak...Read full glossary entry → of 1:2 or better.

Confirmation Rules

  • Ensure the second candle opens below the close of the first candle (a clear gap-down).
  • The volumeVolumeThe total number of shares, contracts, or units of a security traded during a specified time period.Read full glossary entry → on the second (bearish) candle should be higher than the first (bullish) candle, showing selling participation.
  • Look for dynamic resistanceResistanceA price level where selling pressure is strong enough to prevent the price from rising further. It represents a "ceiling" on the chart.Read full glossary entry → (such as a 20 EMA or 50 EMA) to align with the top of the sash.

Common Mistakes

[!WARNING]

  • Trading in Uptrends: Attempting to trade a Bear Sash when the higher timeframe trend is bullish. Continuation setups are only valid when trading with the trend.
  • Ignoring the Gap-Down Open: Trading a candle that opens inside the body of the first candle without a gap. This is a standard bearish candle, not a sash pattern, and has lower probability.
  • No VolumeVolumeThe total number of shares, contracts, or units of a security traded during a specified time period.Read full glossary entry → Validation: Entering the trade when the second candle has thin, retail-only volume. Large players must participate to sustain continuation.

Key Takeaways

  • •The Bear Sash is a two-candle bearish continuation pattern.
  • •The first candle must be a bullish (green) candle during a downtrend.
  • •The second candle must open at or near the opening price of the first candle and close significantly lower.
  • •The pattern confirms that a temporary pullback has ended and the primary downtrend is resuming.
  • •Trade execution is validated when dynamic resistance levels hold the pullback.
Knowledge CheckQuestion 1 of 5

What type of pattern is the Bear Sash?

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