Bearish patterns in technical analysis are chart formations that indicate a potential downward movement in asset prices. These patterns reflect a shift in market sentiment from bullish (buying) to bearish (selling) and are often used by traders to identify potential selling opportunities. Here are some of the most common bearish patterns:

1. Hanging Man

The Hanging Man is a single-candle pattern found at the top of an uptrend. It has a small body and a long lower shadow, with little to no upper shadow.

• Interpretation: The long lower shadow suggests that sellers drove prices down during the session, but buyers managed to push prices back up slightly. This can indicate weakening buying pressure and potential reversal to the downside.
• Context: Effective primarily at the end of an uptrend, confirming bearish reversal when followed by a downward movement.

2. Bearish Engulfing

The Bearish Engulfing pattern consists of two candles. The first is a small bullish candle followed by a larger bearish candle that completely engulfs the body of the first.

• Interpretation: This pattern shows a strong shift in sentiment, where selling pressure overcomes buying pressure, suggesting a potential reversal to the downside.
• Context: Typically appears at the end of an uptrend, providing a strong signal of potential downward momentum.

3. Evening Star

The Evening Star is a three-candle pattern that signals a bearish reversal.

• Structure: It consists of a long bullish candle, followed by a small-bodied candle (which can be bullish or bearish), and then a long bearish candle.
• Interpretation: The pattern indicates that buying pressure is waning, and selling pressure is taking over, pointing to a potential reversal.
• Context: Found at the top of an uptrend, it suggests a strong potential for a trend change to the downside.

4. Bearish Harami

The Bearish Harami is a two-candle pattern where the first candle is a large bullish one, followed by a smaller bearish candle that fits within the body of the first.

• Interpretation: This pattern indicates a reduction in buying pressure and the emergence of selling interest, which could lead to a reversal.
• Context: Appears in an uptrend, signaling a potential shift in market sentiment from bullish to bearish.

5. Shooting Star

The Shooting Star is a single-candle pattern that has a small body at the lower end and a long upper shadow.

• Interpretation: The long upper shadow indicates that buyers tried to push prices higher but failed to sustain the effort, resulting in a close near the low of the session. This suggests potential selling pressure and a bearish reversal.
• Context: Found at the top of an uptrend, it points to a possible downward reversal when confirmed by subsequent price action.