When learning to trade cryptocurrencies or stocks, we often hear about some 'candlestick patterns.' At first glance, they seem quite mysterious, but they actually reflect market sentiment. Below are six classic 'bearish signals' explained in the simplest way.

1. Hanging Man

This candlestick looks like a hammer, but appearing at the end of an uptrend changes its meaning. It indicates that although bulls are still trying to push prices higher, bears are starting to aggressively sell, and the market is showing signs of 'losing momentum.' At this point, caution is advised as a reversal may occur.

2. Shooting Star

This candlestick has a long upper shadow but a small body, resembling a surge that ultimately fails to maintain its position. It often appears in the latter half of an uptrend, indicating that buying pressure is starting to wane and bears are gradually taking control.

3. Bearish Engulfing

After a small bullish candle (or small bearish candle), the next candle suddenly features a large bearish candle that completely 'engulfs' it. It’s like the upward momentum being consumed in one bite, serving as a clear signal of a trend reversal, especially if the large bearish candle is significantly long.

4. Evening Star

This consists of three candlestick formations: an initial rise, followed by a consolidation, and then a sharp decline. Its meaning is clear: the uptrend has ended, buyers begin to hesitate, and sellers rush in. If the last bearish candle breaks below the starting point of the first bullish candle, it essentially confirms the 'reversal.'

5. Three Black Crows

Three consecutive days of significant declines, each opening near the previous day's close and then closing lower. This is a typical scenario where bears dominate the market, leading to a shift in sentiment towards bearish, which can easily evolve into sustained declines.

6. Dark Cloud Cover

The previous day was an uptrend, but the next day opens high and then closes below the midpoint of the previous day's bullish candle. It’s like a sunny day suddenly overshadowed by dark clouds, signaling impending heavy rain. The power of bears has surpassed that of bulls, suggesting that further declines are likely.

These patterns are not 100% accurate, but they reflect changes in sentiment. A fatigued bull and an ascendant bear are indicated by these candlesticks, serving as cautionary signals that deserve our attention.