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Bullish Stock Candle Patterns and Bearish Stock Candle Patterns

Bullish Candlestick Patterns Tutorial Course & Bearish Stock Candlestick Patterns Lesson

Reversal candlestick patterns materialize succeeding a sustained prior market direction. Therefore, for any candle pattern setup to qualify as a valid reversal signal, an established prior trend must be present.

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 & Hanging Man Candlestick

Hammer and hanging man candlesticks look alike. The hammer signals a bullish reversal. The hanging man points to a bearish one.

Reversal Candle Patterns: Hammer Candlestick Setup & Hanging Man Candlestick Setup candlesticks

Hammer Candlestick Pattern & Hanging Man Candlestick Pattern

Hammer Candlestick

A Hammer is a pattern that might mean prices will go up, and it happens when prices have been going down. It's called that because the market is forming a bottom.

A hammer has:

  • A small body
  • The body is at the top
  • The 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

Hammer Stock Candlestick Pattern - Hammer Bullish Stock Candlestick Setups

Hammer Candlestick

Technical Analysis of Hammer Candle-sticks Pattern

A buy signal confirms when a candle closes above the open of the candle just before the hammer pattern.

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

Hanging Man Candlestick

This setup is a bearish reversal signal during an uptrend. It's called a “hanging man” because the pattern kind of looks like a person hanging from a noose.

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 color of the body isn't important

What is the Difference between Candle-sticks Patterns & Chart Setups?

Hanging Man Candlestick

Trading Analysis of the Hanging Man Candles

A sell signal confirms when a bearish candle closes below the open of the candle before the hanging man pattern.

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

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