Reversal Candle Patterns and Their Confirmation: Hammer Candle Pattern & Hanging Man Candle Pattern

Hammer Bullish Stock Candlestick Patterns

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

These reversal candle patterns are:

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

Hammer Candle Pattern & Hanging Man Candlestick Pattern

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

Hammer Candle Pattern and Hanging Man Candle Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern which occurs during a stocks downwards trend. It is named so because the stocks 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 isn't important

Hammer Candle

Technical Analysis of Hammer Candlesticks Pattern

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

Stop orders should be placed a few pips just below the low of the hammer candle-stick.

Hanging Man Candlestick

This stocks pattern is a potentially bearish reversal stocks signal which occurs during a stocks upwards trend. It is named so because it resembles a man hanging on a noose up high.

A hanging man candlestick 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 isn't important

Hanging Man Candle

Technical Analysis of Hanging Man Stocks Candles

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

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