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Reversal Candlestick Patterns and Their Confirmation: Hammer and Hanging Man Candlestick Pattern - Bullish and Bearish Candlesticks

Hammer Bullish Candlestick Patterns – Hanging Man Bearish Candle Patterns

Reversal candle-stick patterns occur after an extended prior trend. Therefore, for a candle pattern to qualify as a reversal pattern there must be a prior trend.

These reversal candlestick patterns are:

  1. Hammer Candle Forex Trading Pattern and Hanging Man Candlestick Trading Pattern
  2. Inverted Hammer Candle Pattern & Shooting Star Candle Pattern
  3. Piercing Line Candle Pattern & Dark Cloud Cover Candle Pattern
  4. Morning Star Candles & Evening Star Candles
  5. Engulfing Candles Patterns

Hammer Candle Pattern and Hanging Man Candle Pattern Candles

Hammer Candle Pattern & Hanging Man Candle Pattern candles look alike but hammer is bullish reversal pattern and hanging man is a bearish reversal pattern.

Reversal Candlestick Chart Patterns: Hammer Candlestick and Hanging Man Candles Patterns Explained - Different Forex Candlestick Pattern - How Do I Trade Hammer Candle Pattern Forex Signal?

Hammer Candle Pattern and Hanging Man Candle Pattern Candles

Hammer Candlestick

Hammer is a potentially bullish pattern that occurs during a forex downtrend. It is named so because the market is hammering out a market bottom.

A hammer has:

  • A small body
  • The body is at the top
  • The lower shadow is 2 or 3 times the length of the real body.
  • Has no upper shadow or very small upper shadow if present.
  • The color of the body is not important

Hammer Candlestick Reversal Chart Setups - Hammer Bullish Candles Pattern Explained - Forex Hammer Candle Setup - Hammer Bullish Candle Patterns

Hammer Candle

Technical Analysis of Hammer Candles Pattern

The buy signal is confirmed when a candle closes above the opening price of the candle on the left side of the hammer candle pattern.

Stop orders should be set a few pips just below low of the hammer candle.

Hanging Man Candlestick

This pattern is a potentially bearish reversal signal that occurs during a forex uptrend. It is named so because it resembles a man hanging on a noose up high.

A hanging man candle has:

  • A small body
  • The body is at the top
  • The lower shadow is 2 or 3 times the length of the real body.
  • Has no upper shadow or very small upper shadow if present.
  • The color of the body is not important

Hanging Man Reversal Candlestick Patterns – Forex Hanging Man Bearish Candle Trading Setup Example Explained - Is Hanging Man Candlestick Patterns Bullish or Bearish

Hanging Man Candle

Technical Analysis of Hanging Man Candles Pattern

The sell signal is confirmed when a bearish candlestick closes below the open of the candle on left-side of this hanging man candle pattern.

Stop orders should be set a few pips just above the high of the hanging man candle.

 

Technical Analysis