The first candle in the Bearish Counter Attack candlestick pattern, has a long white candle. The second day, the stock gaps up and then trades bearish. Then the second day closes out with a black candle which trades down to the same price or very close to as the previous day’s close. On an end of day ticker tape, most would think the day was a loss with very little move in the price, but as a candle trader, you can see the volatility. That long gap up and bearish trade down really signals the shift in momentum.
The Bearish Counter Attack pattern is located in an uptrend. The pattern gains significance if it also occurs at resistance. It is comparable to the Dark Cloud Cover candlestick pattern as the two patterns are similar and have similar trading outcomes.
The Bearish Counter Attack is an excellent signal to warning the previous bullish trend is losing some momentum, and a new bearish opportunity may be just around the corner.