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 Candle-stick Pattern & Shooting Star Stock Indices Candle Pattern
3. Piercing Line Indices Candlestick Pattern and Dark Cloud Cover Stock Indices Candle Pattern
4. Morning Star Candlesticks & Evening Star Candles
5. Engulfing Candlesticks Patterns

Hammer Candle Pattern and Hanging Man Indices Candlestick

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

Hammer Candle Pattern and Hanging Man Candle-stick Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern which occurs during a downwards indices trend. It's 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 Candle-sticks 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 stick pattern.

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