Bullish Stock Candle Patterns and Bearish Stock Candle Patterns

Bullish Candlestick Patterns Tutorial Course & Bearish Stock Candlestick Patterns Lesson

Reversal candle stick patterns form after an extended prior market trend. Hence, for a candle pattern setup to qualify as a reversal setup there must be a prior market trend.

These reversal candle patterns are:

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

Hammer Candlestick Pattern and Hanging Man Candlestick

Hammer Candlestick Pattern and Hanging Man Candlestick Pattern candlesticks look similar but hammer is bullish market reversal trading pattern & hanging man candle is a bearish market reversal trading pattern.

Hammer Candlestick Pattern and Hanging Man Candlestick Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern which occurs during a downward trend. It's named & called so because the stocks market is hammering out a bottom.

A hammer has:

• A small body
• The body is at the top
• The lower shadow is two or 3 times the length of real body.
• Has no upper shadow or has a very small upper shadow if present.
• The colour of the body isn't important

Hammer Candlestick

Technical Analysis of Hammer Candle-sticks Pattern

The buy signal gets to be confirmed when a candle closes above the opening stock price of the candlestick to the left side of the hammer trading candle pattern.

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

Hanging Man Candlestick

This pattern setup is a potentially bearish market reversal stocks signal which forms during a 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
• Lower shadow is 2 or 3 times the length of real body.
• Has no upper shadow or has a very small upper shadow if present.
• The colour of the body isn't important

Hanging Man Candlestick

Trading Analysis of the Hanging Man Candles

The sell stock signal gets to be confirmed when a bearish candlestick closes below the open of the candle on left side of this hanging man candle stick pattern.

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

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