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

Hammer Bullish Commodities Trading Candlestick Patterns

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

These reversal candlestick patterns are:

1. Hammer Commodities Trading Candlestick Pattern and Hanging Man Commodity Trading Candlestick Pattern
2. Inverted Hammer Commodities Trading Candlestick Pattern and Shooting Star Commodity Trading Candlestick Pattern
3. Piercing Line Commodities Trading Candlestick Pattern and Dark Cloud Cover Commodities Trading Candlestick Pattern
4. Morning Star Candlesticks and Evening Star Candlesticks
5. Engulfing Commodity Trading Candlesticks Patterns

Hammer Commodities Trading Candlestick Pattern and Hanging Man Commodities Trading Candlestick Pattern

Hammer Commodities Trading Candlestick Pattern and Hanging Man Commodity Trading Candlestick Pattern look alike but hammer is bullish reversal commodity pattern and hanging man is a bearish reversal commodity pattern.

Hammer Commodities Trading Candlestick Pattern and Hanging Man Commodity Trading Candlestick Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern that occurs during a commodity downward trend. It is named so because the commodity 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 Candlestick

Technical Analysis of Hammer Candlesticks

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

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

Hanging Man Candlestick

This commodity pattern is a potentially bearish reversal commodity signal that occurs during a commodity upward trend. It is 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 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

Hanging Man Candlestick

Technical Analysis of Hanging Man Candlesticks

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

Stop orders should be place a few pips just above the high of the hanging man candlestick.