Reversal Commodities Trading Candle Patterns and Their Confirmation: Hammer Candle Pattern & Hanging Man Candlestick Pattern

Hammer Bullish Candle Setups

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

The reversal candlestick patterns are:

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

Hammer Candle Pattern & Hanging Man Candle Pattern

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

Hammer Candle Pattern & Hanging Man Commodity Trading Candle Setup

Hammer Candlestick

Hammer is a potentially bullish pattern that forms during a downward trend. It's named so because the market is hammering ++oout a bottom.

A hammer has:

• A small body
• The body is at the top
• The lower shadow is 2 or 3 times the length of real body.
• Has no upper shadow or very small upper shadow if present.
• The color of the body isn't important

Hammer Candle

Technical Analysis of Hammer Candle Pattern

The buy signal is confirmed when a candle closes above the opening price of the candlestick on the left side of the hammer candle pattern.

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

Hanging Man Candlestick

This pattern is a potentially bearish reversal commodity signal which forms during a upward trend. It's 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 2 or 3 times the length of real body.
• Has no upper shadow or very small upper shadow if present.
• The color of the body isn't important

Hanging Man Candle

Technical Analysis of Hanging Man Candles

The sell commodity signal is confirmed when a bearish candle closes below the open of the candle on left-side of this hanging man candle setup.

Stop orders should be set a few pips just above the high of the hanging man candle.