I'm trying to understand the following proof for $\binom{j+r-1}{j}=(-1)^j \binom{-r}{j}$.
$$ \begin{align} \binom{j+r-1}{j}&=\frac{(j+r-1)(j+r-2) \cdots r}{j!}\\ &=(-1)^j \frac{(-r-(j-1))(-r-(j-2)) \cdots (-r)}{j!} \\&=(-1)^j \frac{(-r)(-r-1) \cdots (-r-(j-1))}{j!} \\&=(-1)^j \binom{-r}{j} \end{align} $$
I think I understand everything else than the second equation.
The first equation merely uses the definition of a binomial coefficient.
The second one seems to change the signs of the terms, but why does $(-1)$ have to have $j$th power?
The third equation merely reverses the nominator terms in order to see the pattern that can be written as a binomial coefficient in the fourth equation.
So is this correct and can you explain the second equation?
Your explanation is correct. Note the binomial coefficient \begin{align*} \binom{n}{j}=\frac{n(n-1)\cdots(n-(j-1))}{j!} \end{align*} has according to the $j$ factors of $j!=j(j-1)\cdots 3\cdot 2\cdot 1$ also $j$ factors in the numerator.