Bullish Stock Indices Candlestick Patterns and Bearish Stock Indices Candlestick Patterns

Bullish Stock Indices Candlestick Patterns Tutorial and Bearish Stock Indices Candlestick Patterns Tutorial

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

These reversal candlestick patterns are:

1. Hammer Indices Candlestick Pattern and Hanging Man Stock Indices Candlestick Pattern
2. Inverted Hammer Indices Candlestick 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 Indices Candlestick Pattern and Hanging Man Indices Candlestick

Hammer Indices Candlestick Pattern and Hanging Man Indices Candlestick Pattern candlesticks look alike but hammer is bullish reversal indices pattern and hanging man is a bearish reversal indices pattern.

Hammer Indices Candlestick Pattern and Hanging Man Indices Candlestick Pattern

Hammer Candlestick

Hammer is a potentially bullish 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 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 Candlestick

Technical Analysis of Hammer Candlesticks

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 candlestick pattern.

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

Hanging Man Candlestick

This indices pattern is a potentially bearish reversal stock indices signal that occurs during a upward indices trend. It is named so because it resembles 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 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

Hanging Man Candlestick

Technical Analysis of Hanging Man Candlesticks

The sell stock indices signal is confirmed when a bearish candlestick closes below the open of the candlestick on the left side of this hanging man candlestick pattern.

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