Reversal Stock Indices Candlestick Patterns - Hammer Indices Candlestick Pattern

Reversal Candlesticks Indices Chart Patterns: Bullish Indices Candle Patterns and Bearish Indices Candle Patterns PDF

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

These reversal candlesticks patterns are:

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

Hammer Stock Indices Candlesticks Pattern and Hanging Man Indices Candlestick Pattern

Hammer Stock Indices Candlesticks Pattern and Hanging Man Indices Candlestick 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 and Hanging Man Indices Candlestick Pattern

Hammer Indices Candlesticks Patterns

Hammer Indices Candlesticks Pattern is a potentially bullish candlestick pattern that occurs during a downward indices trend. It is named so because the stock indices trading market is hammering out a market bottom.

A hammer candlestick pattern has:

• A small body
• The body is at the top
• The lower shadow is two or three times the 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 Candlesticks

Technical Analysis of Hammer Indices Candlesticks Pattern

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

Stop loss orders should be place a few pips just below the low of the indices trading hammer candlestick pattern.