I've noticed that many traders underestimate the importance of correctly reading bearish candles. This is exactly what can radically change your trading if you learn to spot signals in time.

A bearish candle is not just a red line on the chart. It’s a signal that sellers are taking control of the market at a specific moment. And if you want to trade with the trend, not against it, you need to understand what these candles are telling you.

Here are a few patterns I often see on charts that really work. The hanging man, for example, is a candle with a small body at the top and a long wick at the bottom. It usually appears at the peaks of uptrends and signals a possible reversal. I’ve noticed that after such a candle, a correction often begins, so you should be more attentive.

There’s also the bearish engulfing candle — when a small bullish candle is completely engulfed by a large bearish candle. This is a very strong signal of increased selling pressure. When I see such a pattern, I usually start preparing for a downward trend.

The evening star is a more complex pattern of three candles. First, a long bullish candle, then a small one with a gap up, and finally a bearish candle that closes below the middle of the first. This is one of the most reliable reversal signals I’ve seen. When such a pattern forms, the probability of a bear is very high.

The gravestone doji is an interesting candle with a very long upper wick and almost no body. It shows that buyers tried to push the price up, but sellers stopped them. This often indicates that a bearish candle is preparing to attack downward.

Three black crows is a pattern of three consecutive bearish candles, each opening inside the previous one. When I see this, I understand that sellers are fully in control and the downward trend will continue.

How do I use this in practice? First, I never rely on just one bearish candle. I always look for confirmation through other indicators — RSI, moving averages, support and resistance levels. This helps avoid false signals.

Second, I always set a stop-loss before entering a position. The market can be unpredictable, and even the most reliable pattern sometimes fails. Therefore, risk management is fundamental.

Third, I keep a trading journal. I record which patterns worked, which didn’t, and why. After a month or two, a clear picture emerges of which bearish candles work specifically on your asset and timeframe.

My advice: don’t rush to trade these patterns with real money right away. Practice on a demo, look at historical charts, understand the logic. Technical analysis needs to be learned gradually, and it’s worth it. Good luck in trading!