Reversal Crude Candle Pattern Setups and Their Confirmation: Hammer Trading Candle-stick Pattern & Hanging Man Candle-stick Pattern

Hammer Bullish Crude Candlestick Pattern Setups

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

These reversal candle setups are:

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

Hammer Trading Candle-stick Pattern & Hanging Man Crude Candlestick Pattern

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

Hammer Trading Candle-stick Pattern & Hanging Man Candle-stick Pattern

Hammer Candlestick

Hammer is a potentially bullish setup which occurs during a downwards trend. It's 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 isn't important

Hammer Candle

Analysis of Hammer Crude Candles Pattern

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

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

Hanging Man Candlestick

This pattern is a potentially bearish reversal signal which occurs during a upward trend. It's named so because it resembles a man hanging on a noose up high.

A hanging man candle 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 isn't important

Hanging Man Candle

Analysis of Hanging Man Crude Candlesticks

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

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