Hammer and Hanging Man Candlestick Chart Pattern

Hammer Hanging Man Candlestick:- 1.The hammer and hanging man are the same in appearance but they actually occurs in very different scenarios.2.The hammer and hanging man look exactly alike but have totally different meanings depending on past price action. Both have cute little bodies (Green or Red), long lower shadow, and short or absent upper shadow.

The Hammer Hanging Man Candlestickcan be recognized by three characteristic.

1.The real body is at the upper end of the trading range. The color of the body is not important.
2.A long lower shadow should be twice the height of the real body.
3.It should have no, or very short, upper shadow.

Hammer

Hammer Hanging Man Candlestick

Hanging Man
Hanging Man candle

Both Hammer and Hanging Man are major reversal patterns.

Hammer Candlestick.

hammer and inverterd
hammer candlestick chart
1.This Candlestick has small body a flat top and a long down wick.
2.This is a bullish reversal formation. When found in a downtrend it indicates a rejection of the zone and the start of a strong bullish pressure.

Hammer Candlestick formation.

1.Downtrend.
2.Lower Shadow at least twice as big as Real Body.
3.Real Body Bullish or Bearish; better it Bullish.

Inverted Hammer Candlestick.

inverted hammer candlestick

Inverted hammer Candlestick Formation.

1.Downtrend.
2.Upper Shadow at least twice as big as Real Body.
3.Real Body Bullish or Bearish; better it Bullish.

Hanging Man Candlestick.

hanging man candlestick
1.This Candlestick has small body a flat top and a long down wick.
2.This is a Bearish reversal formation. When found at the top of an uptrend it indicates the exhaustion of the move and the start of a selling pressure.

Hanging Man Candlestick Formation.

1.Uptrend.
2.Gap up.
3.Lowest shadow at least twice as big as Real body.
4.Real body Bullish or bearish; better if Bearish.
5.Confirmation Candle.

Note.

1.Long shadow give greater reversal.
2.Gap up the day before mean greater chance of reversal.
3.Larger Volume on hammer day give greater probability of reversal.

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