If you see then the stocks in the same sector will tend to have similar price movements. If the companies are of the same size then this means that the stock movement will be pretty much the same. This happens because the size of the companies is the same, so is their business and the same external factors are what affect their stock price.
But this does not mean that you will see an exact percentage increase or decrease in their stock price. Suppose there is bad news about the banking sector then this does not mean that al the banking stocks will fall by the same amount. Some may fall by 1%, some by 2% and some by 0.5%. You will see some similar bearish patterns on these stock charts.
Here it could happen that one of the stocks is making a dark cloud cover pattern and the other is making a bearish engulfing pattern. Both the candlestick patterns tell you then the stock has to be short. But which one do you choose?
You will need to understand which patterns are more prominent than the others. While the bearish engulfing and the dark cloud cover pattern both tell you to be a seller in the market, you need to pick up the stock that has a bearish engulfing pattern and leave the stock that is showing a dark cloud cover pattern. This is because the bearish engulfing candle is more bearish as compared to the other candlestick pattern.
That being said you should not short a stock blindly just by seeing the candlestick pattern. The trade should also be a qualified one for you to take it. Just seeing a candlestick pattern being formed is not sufficient.
Harami or pregnant, full information is another very popular multiple candlestick patterns. This is formed using two candles. The first candle will have a long body and the second will have a short body. The second candle color will mostly be opposite to the color of the first candle. The harami is a popular trend reversal candlestick pattern. The harami pattern is further classified as bullish harami and bearish harami.
One may think that it is really difficult to buy heart so many candlestick chart patterns to be able to take the trades. The most important thing is to understand what the candles are doing. It is about looking at the major demand and supply zones first. A candlestick pattern getting formed at those levels act as an odds enhancer and makes you confident of taking the trade.