Bullish CFD Candle Patterns and Bearish CFDs Candle Patterns

Bullish CFDs Candlestick Patterns & Bearish CFDs Candlestick Patterns

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

These reversal candle patterns are:

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

Hammer Candle Pattern & Hanging Man Candlestick Pattern

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

Hammer Candlestick Pattern & Hanging Man Candlestick Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern which occurs during a cfd downwards trend. It is named so because the cfd 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 is not important

Hammer Candle

Technical Analysis of Hammer Candlesticks Pattern

The buy trading signal is confirmed when a candle closes above the opening cfd 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 hammer candlestick.

Hanging Man Candlestick

This cfd pattern is a potentially bearish reversal cfd trading signal that forms during a cfd upwards trend. It is named so because it resembles a man hanging on a noose up high.

A hanging man candle-stick 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 is not important

Hanging Man Candle

Technical Analysis of Hanging Man CFDs Candlesticks

The sell trading signal is confirmed when a bearish candlestick closes below the open of the candle 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 candle-stick.