Bullish Stock Candle Patterns and Bearish Stock Candle Patterns

Bullish Candlestick Patterns Tutorial & Bearish Stock Candlestick Patterns Guide

Reversal candle stick patterns form after an extended prior market trend. Hence, for a candle pattern setup to qualify as a reversal setup there must be a prior market trend.

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 & Dark Cloud Stock Candlestick Pattern
4. Morning Star Candlesticks and Evening Star Candlesticks
5. Engulfing Candles Patterns

Hammer Candlestick Pattern & Hanging Man Candlestick

Hammer Candlestick Pattern and Hanging Man Candlestick Pattern candlesticks look similar but hammer is bullish market reversal trading pattern and hanging man candle is a bearish market reversal trading pattern.

Hammer Candlestick Pattern & Hanging Man Candlestick Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern which occurs during a downwards trend. It's named & called so because the stocks market is hammering out a bottom.

A hammer has:

• A small body
• The body is at the top
• The lower shadow is two 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 Candlestick

Technical Analysis of Hammer Candle-sticks Pattern

The buy signal gets to be confirmed when a candle closes above the opening stock price of the candle to the left side of the hammer trading candle pattern.

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

Hanging Man Candlestick

This pattern setup is a potentially bearish market reversal stocks signal which forms during a upward 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
• 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 is not important

Hanging Man Candlestick

Trading Analysis of the Hanging Man Candlesticks

The sell stock signal gets to be confirmed when a bearish candlestick closes below the open of the candle on left side of this hanging man candle stick pattern.

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

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