Bullish Stock Candle Patterns & Bearish Stock Candlestick Patterns

Bullish Candle Patterns Tutorial and Bearish Stock Candle Patterns Guide

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

These reversal candlestick patterns are:

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

Hammer Candle Pattern and Hanging Man Candlestick

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

Hammer Candle Pattern and Hanging Man Candle-stick Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern which occurs during a downwards trend. It's named so because the stock 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 signal is confirmed when a candle closes above the opening stock 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 pattern is a potentially bearish reversal stock signal which occurs during a upwards 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 Candlesticks

The sell stock 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.