Reversal Candlestick Stock Indices Chart Patterns - Inverted Hammer Bullish Stock Indices Candlestick Patterns

Reversal Candlestick Indices Chart Patterns: Bullish Stock Indices Candlestick Patterns and Bearish Stock Indices Candlestick Patterns

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

These reversal candlestick 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 is bullish reversal candlestick 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 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 Candlesticks

Technical Analysis of Hammer Indices Candlesticks Patterns

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

Reversal Candlestick Indices Chart Patterns: Bullish Stock Indices Candlestick Patterns and Bearish Stock Indices Candlestick Patterns

Inverted Hammer Stock Indices Candlesticks Pattern and Shooting Star Indices Candlestick Pattern candlesticks look alike. These have a long upper shadow and a short body at the bottom. Their color does not matter. What matters is the point where they appear whether at the top of a market indices trend (star) or the bottom of a market indices trend (hammer).

The difference is that inverted hammer is a bullish reversal candlestick pattern while shooting star is a bearish reversal candlestick pattern.

Upward Indices Trend Reversal - Shooting Star Candlesticks

Downward Indices Trend Reversal - Inverted Hammer Candlesticks

Inverted Hammer Stock Indices Candlesticks Pattern and Shooting Star Indices Candlestick Pattern Indices Chart Patterns

Inverted Hammer Candlestick

This is a bullish reversal candlestick pattern. It occurs at the bottom of a Indices trend.

Inverted hammer occurs at the bottom of a down indices trend and indicates the possibility of reversal of the downward stock indices trend.

Inverted Hammer Candlestick

Technical Analysis of Inverted Hammer Candlestick

A buy is confirmed when a candlestick closes above the neckline, this is the opening of the candlestick on the left side of this pattern. The neckline in this case is a resistance level.

Stop orders for the buy stock indices trades should be placed a few pips below the lowest stock indices price on the recent low.

An inverted hammer is named so because it signifies that the stock indices trading market is hammering out a bottom.