Reversal Stock Indices Candle Patterns - Hammer Candle Pattern

Reversal Candle-sticks Stock Indices Chart Patterns: Bullish Stock Indices Candle Patterns & Bearish Stock Indices Candle Patterns Guide

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 candle-sticks 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 Candlesticks & 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 and Hanging Man Candle-stick 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 Candle Sticks Patterns

Hammer Candlesticks Pattern is a potentially bullish candle-stick pattern which forms during a downward indices trend. It's named so because the 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 Candle-sticks

Technical Analysis of Hammer Candlesticks Pattern

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

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