In addition to double-stick patterns that tell a trader it's time to sell or put on a short after an uptrending move, some patterns also indicate a downtrend continuation is on the horizon. These patterns can tell you when you still have room to profit on a short. You can also turn to them when you're looking to buy a stock that's been in a downtrend and looks to be "getting cheap." A bearish double-stick trend continuation pattern can let you know that a stock is going to get cheaper and can therefore be had at an even lower price.
Allow me to point out an interesting side note and comparison of Figures 8-20 and 8-21. The successful bearish piercing line occurs when the trend appears to be moderating. On the DELL chart, which contains the failing pattern, the opposite occurs. The trend is strong, but the pattern appears after an acceleration of momentum. This burst of uptrend momentum can indicate to an observant trader that even though a bearish pattern has appeared, it's probably smart to use caution when putting on a short. It can also signal that a quick exit may very well be in order. Remember to keep on the lookout for these increases in trend strength. To help you train your eye, I've highlighted the relevant area in Figure 8-21.
All the two-day bearish trending patterns covered in this section require that the market or stock in question be in a down-trending mode. Determining the trend can be subjective and can also be a matter of the time frame in which you're trading. I go into great detail on determining trend in later chapters (especially Chapter 11), but for this section, just concentrate on the pattern and don't worry as much about whether you agree with my assessment of the prevailing trend.
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