Reversal Stock Indices Candle Patterns - Hammer Candle Pattern

Reversal Candlesticks Stock Indices Chart Patterns: Bullish Stock Indices Candle Patterns & Bearish Stock Indices Candle Patterns Tutorial

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

These reversal candles patterns are:

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

Hammer Stock Indices Candlesticks Pattern & Hanging Man Stock Indices Candle Pattern

Hammer Stock Indices Candlesticks Pattern & Hanging Man Candle Pattern candlesticks look alike but hammer candlesticks pattern is bullish reversal candlesticks pattern and hanging man is a bearish reversal candlestick pattern.

Hammer Stock Indices Candlesticks Pattern & Hanging Man Stock Indices Candle Pattern

Hammer Stock Indices Candles Patterns

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

A hammer candlestick pattern 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 Candlesticks

Technical Analysis of Hammer Candles Pattern

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

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