< Japanese Candlesticks > 👇
*Bearish Japanese Candlestick Patterns*
They are candles or candlestick combinations that form on the chart, indicating that the price may decline in the coming period. According to technical analysis, these candles are warning patterns that require price observers to monitor liquidity flows after them to consider the possibility of a downward reversal.
*Bearish Japanese Candlestick Patterns* No. 1 👇
1 - Hanging Man Candlestick Pattern
The first bearish candlestick is the Hanging Man candlestick pattern, whose lower shadow is relatively long compared to the upper shadow, and the price declines during the formation of the candle body. However, the candle body should be small compared to the lower shadow, and the absence of an upper shadow increases the candle's credibility. However, in all cases, the upper shadow should be very small, and the image illustrates this candle:
This candle only occurs at the end of an uptrend, and should not be used during or at the end of a downtrend, as it may turn into an imperfect hammer candle pattern.