Bearish candlesticks usually appear when there is strong selling pressure, and indicate a possible continuation of the downtrend or a reversal of the uptrend. There are several common patterns that reflect the downtrend, including:
1. Hanging Man Candle
It appears in an uptrend and indicates weak buyers and a possible start of a downtrend.
2. Bearish Engulfing Candle
It consists of two candles, where the second candle (bearish) completely engulfs the first candle (bullish), indicating strong selling pressure.
3. Shooting Star
It has a small body and a long upper shadow, and appears at the top of a trend, indicating a possible reversal to the downside.
4. Dark Cloud Cover Candle
It consists of two candles: the first is bullish and the second falls below the middle of the body of the first candle, indicating increased selling pressure.
If you notice any of these patterns in your charts, it may be a good idea to study the support and resistance levels carefully, and develop a risk management plan.
