Bullish Stock Index Candlestick Patterns & Bearish Stock Index Candlestick Patterns

Bullish Indices Candle Patterns Tutorial and Bearish Indices Candle Patterns Tutorial

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

These reversal candle patterns are:

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

Hammer Candle Pattern & Hanging Man Candle Pattern

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

Hammer Candle Pattern & Hanging Man Candle Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern which occurs during a stock indices downward trend. It is named so because the stock indices market is hammering out a market bottoms.

A hammer has:

• A small body
• The body is at the top
• The lower shadow is two or three times 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

Technical Analysis of Hammer Candles Pattern

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

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

Hanging Man Candlestick

This stock indices pattern is a potentially bearish reversal stock indices trading signal that forms during a stock indices upward trend. It is named so because it looks like 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 two or three times 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 Candlestick

Technical Analysis of Hanging Man Stock Indices Trading Candlesticks

The sell trading signal is confirmed when a bearish candle 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.