Bullish Commodities Candlestick Patterns & Bearish Commodities Trading Candlestick Patterns

Hanging Man Bearish Commodities Candle Patterns

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

These reversal candle patterns are:

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

Hammer Candlestick Pattern and Hanging Man Commodity Candle

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

Hammer Candle Pattern and Hanging Man Candle Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern that forms during a commodity downward trend. It is named so because the commodities trading market is hammering out a market bottom.

A hammer has:

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

Hammer Candle

Technical Analysis of Hammer Candles Pattern

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

Stop orders should be placed a few pips just below the low of the hammer candle-stick.

Hanging Man Candlestick

This commodity trading pattern is a potentially bearish reversal commodity trading signal that forms during a commodity upwards trend. It's 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 2 or 3 times the 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 Candle

Technical Analysis of Hanging Man Commodity Trading Candles

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

Stop orders should be placed a few pips just above the high of the hanging man candle-stick.