Types of Hammer Candles - Hammer Bullish Candlestick - Inverted Hammer Bullish Candlestick
Hammer Bullish Candles Patterns - Reversal Candles Patterns
Reversal candles patterns occur after an extended prior trend. Therefore, for a candlesticks pattern to qualify as a reversal candlesticks pattern there must be a prior trend.
These reversal candle sticks patterns are:
- Hammer Candlesticks Pattern and Hanging Man Candles Pattern
- Inverted Hammer Candles Pattern & Shooting Star Candles Pattern
- Piercing Line Trading Candlesticks Pattern & Dark Cloud Cover Candles Pattern
- Morning Star Candles & Evening Star Candles
- Engulfing Trading Candles Patterns
Hammer Candlesticks Pattern and Hanging Man Candles Pattern
Hammer Trading Candles Pattern & Hanging Man Candles Pattern candles look alike but hammer is bullish reversal candlesticks pattern and hanging man is a bearish reversal candlesticks pattern.
Hammer Candles Pattern vs Hanging Man Trading Candlesticks Pattern
Hammer Trading Candles Patterns
Hammer is a potentially bullish pattern which occurs during a forex downward trend. It is named so because the market is hammering out a market bottoms.
A hammer has:
- A small body
- The body is at the top
- The lower shadow is two or three times 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 Candles
Forex Analysis of Hammer Candles Patterns
The buy signal is confirmed when a candlesticks closes above the opening price of the candle sticks on the left side of the hammer candle sticks pattern.
Stop orders should be set few pips just below the low of the hammer candle.
Inverted Hammer Bullish Candles - Reversal Candle Patterns
Inverted Hammer Candles Patterns and Shooting Star Candles Patterns 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 trend (star) or the bottom of a market trend (hammer).
Difference is that inverted hammer is a bullish reversal candlesticks pattern while shooting star is a bearish reversal candlesticks pattern.
Upward Trend Reversal - Shooting Star Candlesticks
Downward Trend Reversal - Inverted Hammer Candlesticks
Inverted Hammer Candlesticks Pattern & Shooting Star Pattern Candles Patterns
Inverted Hammer Forex Candle
This is a bullish reversal candle sticks pattern. It occurs at the bottoms of a Forex trend.
Inverted hammer occurs at the bottom of a downward trend and indicates the possibility of reversal of the downwards Forex trend.
Inverted Hammer Forex Candle
Forex Analysis of Inverted Hammer Candlestick
A buy is confirmed when a candlesticks closes above the neckline, this is the opening of the candlesticks on the left side of this pattern. The neckline in this case is a resistance zone.
Stop orders for the buy trades should be set a few pips below the lowest price on the recent low.
An inverted hammer is named so because it indicates that the market is hammering out a bottom.
