Basic candlestick patterns: Bearish

To a beginner investor, the sheer variety and complexity of candlestick patterns can seem overwhelming. Nevertheless, the ability to recognize various patterns can give you price action insights that can help you better plan your next moves.
Furthermore, once you can handle basic patterns, you can better predict future prices, trends, and overall market momentum. In other words, you will enjoy a greater possibility of making profitable trades while minimizing your risk.
This lesson will study the most important patterns to familiarize yourself within a bearish market. Just as you would when picking up a new sport, you first learn the basics so the more complex moves will come naturally to you afterwards.
Before diving into this lesson, learn about candlestick charts and how to read them!

5 bearish candlestick patterns

Let’s go through the simple Japanese candlestick patterns every crypto trader should know. In this lesson, we will concentrate on the bearish patterns. 
1. 3 Black Crows
Characterization: The 3 Black Crows pattern comprises 3 long red candles inside a down-trend right after an up-trend. The candles don’t usually have lower wicks but if they do, the wicks are short. The last two candles of the pattern open within the previous candle’s body and close below it. This is the bearish equivalent of the 3 White Soldiers.
Indication: This pattern represents how aggressively bears react to past price increases by closing their positions and pushing the price down. The Three Black Crows indicates to traders that they should close their positions or open shorts. 
2. Hanging Man
Characterization: The Hanging Man pattern consists of a single candle with a long lower wick and a small body. It emerges at the top of a trend or during an up-trend. The Hanging Man can be either green or red, but the green one is considered less bearish than the red one. 
Indication: The Hanging Man indicates a likely reversal from an up-trend, and traders often perceive it as a sell signal. However, note that the same pattern is called a Hammer during a down-trend and in that context, signals a bullish reversal.
3. Bearish Engulfing
Characterization: The Bearish Engulfing pattern is characterized by 2 candlesticks occurring at the peak of an up-trend. The first candle is green, and the second is a long red candle that completely engulfs the first candle. Traditionally, there should be a gap between these 2 candles if you use a daily interval; however, there are usually no gaps in the crypto markets as they function 24/7.
Indication: This pattern indicates a reversal from an up-trend and suggests that bears have asserted their dominance. Therefore, a trader can expect lower prices following this pattern.
4. Bearish Harami
Characterization: The Bearish Harami pattern consists of two candles — the first is a long green candle, followed by a red candle entirely inside the body of the first one. The word ‘harami’ means ‘pregnant’ in Japanese, so you can think of the long green candlestick as the mother and the small RED one as its baby. 
Indication: The Bearish Harami candlestick pattern indicates increased selling pressure and the beginning of a potential down-trend.
5. Shooting Star
Characterization: You will recognize the Shooting Star from a single candlestick with a small body, long upper wick, and little to no lower wick. This pattern typically appears after a strong up-trend.  Be sure not to  confuse this pattern with a similar inverted hammer, as it occurs at the bottom of a down-trend and indicates the potential beginning of an up-trend.
Indication: The Shooting Star indicates a strong price rejection after significant bullish momentum; traders usually expect a bearish reversal afterwards. Its long wick indicates that bulls mainly controlled the time frame but eventually lost ground to bears.
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