Separating Lines (Bearish)
You can see immediately that the bearish separating lines pattern is the exact opposite of the bullish separating lines pattern, so it does not need any further explanation.
Falling Three Methods (Bearish)
The pattern known as bearish falling three methods confuse many chartists at first. It is not until the third or fourth day of the pattern that it becomes clear.
Look close and you can see that a new high is not formed from the high set on the first day. This is a very bearish signal and short sellers react strongly to this pattern.
The first day of the in-neck continuation pattern is a long black day and the second is a white day that shows an opening of trading below the low of the prior trading session. Then on the close the price is equal to or just above the closing price of the prior session.
This pattern has the bears looking for the falling trend to continue but it may be some time before it is confirmed.
Engulfing Pattern - Bearish
Engulfing pattern (bearish) develops in an uptrend when the sellers outnumber the buyers; this action is reflected by a long red real body engulfing a small green real body.
You can see the opening was higher than the previous day, and, during the trading session, the issue sold off with volume much greater than the previous session.
Engulfing Pattern - Bullish
Engulfing pattern on the bullish side of the market is the opposite of the previous pattern and takes place when the buyers outpace the sellers, which is reflected in the chart by a long green real body engulfing a small red real body.
As you can see, this is a chart of an issue in a downtrend that has now lost momentum. The buyers may be coming back into this issue, creating a trend reversal and bottoming out of this downtrend.