Bullish Stock Candlestick Patterns and Bearish Stock Candlestick Patterns

Bullish Candle Patterns Tutorial and Bearish Stock Candlestick Patterns Guide

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

These reversal candle patterns are:

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

Hammer Candlestick Pattern & Hanging Man Candlestick

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

Hammer Candlestick Pattern & 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 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 three times the length of real body.
• Has no upper shadow or 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 is confirmed when a candle closes above the opening stock trading price of the candle on 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 reversal stocks signal which forms during a upwards trend. It is 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
• Lower shadow is 2 or 3 times the length of real body.
• Has no upper shadow or very small upper shadow if present.
• The colour of the body is not important

Hanging Man Candlestick

Technical Analysis of Hanging Man Candles

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.

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