Reversal Stocks Candle Patterns and Their Confirmation: Hammer Stock Candle Pattern & Hanging Man Stock Candlestick Pattern

Hammer Bullish Stock Candle Patterns

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

These reversal candlestick patterns are:

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

Hammer Stocks Candle Pattern & Hanging Man Stocks Candle

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

Hammer Stock Candle Pattern & Hanging Man Stocks Candle Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern which forms during a stock downward stocks trend. It is named so because the stocks market is hammering out a market bottoms.

A hammer has:

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

Hammer Candlestick

Technical Analysis of Hammer Stocks Candlesticks Pattern

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

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

Hanging Man Candlestick

This stock trading pattern is a potentially bearish reversal stock signal which occurs during a stock upward stocks 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 2 or 3 times 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 Candlestick

Technical Analysis of Hanging Man Stocks Candles

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

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