Bullish Stock Indices Candle Patterns & Bearish Stock Indices Candlestick Patterns

Bullish Indices Candle Patterns Tutorial and Bearish Stock Indices Candle Patterns Guide

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

These reversal candlestick patterns are:

1. Hammer Candle Pattern & Hanging Man Stock Indices Candle Pattern
2. Inverted Hammer Candlestick Pattern & 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 Candlesticks Patterns

Hammer Candle Pattern and Hanging Man Indices Candlestick

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

Hammer Candle Pattern & Hanging Man Candle Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern which occurs during a downwards indices 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 Candlesticks Pattern

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

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

Hanging Man Candlestick

This indices pattern is a potentially bearish reversal stock indices signal which occurs during a upwards indices trend. It's named so because it looks like 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 is not important

Hanging Man Candlestick

Technical Analysis of Hanging Man Indices Candlesticks

The sell stock indices signal is confirmed when a bearish candlestick closes below the open of the candle on leftside of this hanging man candle pattern.

Stop orders should be placed a few pips just above high of hanging man candlestick.