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

Hammer Bullish Energies Candle Patterns

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

These reversal candle patterns are:

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

Hammer Candlestick Pattern and Hanging Man Candlestick Pattern

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

Hammer Candle Pattern and Hanging Man Candle Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern which occurs during a energies downwards trend. It is named so because the energies 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 Candlestick

Technical Analysis of Hammer Candlesticks Pattern

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

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

Hanging Man Candlestick

This energies pattern is a potentially bearish reversal energies signal which forms during a energies 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 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

Technical Analysis of Hanging Man Energies Candles

Sell trading 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 set a few pips just above the high of the hanging man candlestick.