Hammer Candlestick Pattern - Hammer Bullish Candlesticks Pattern - How to Analyze Hammer Candles Pattern

Hammer Bullish Candlesticks Pattern - Reversal Candlesticks Chart Patterns

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

These reversal candlesticks patterns are:

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

Hammer Candlesticks Pattern and Hanging Man Candle Pattern Candles

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

Hammer Candlesticks Pattern and Hanging Man Candle Pattern Candles

Hammer Candlesticks Patterns

Hammer Candles Pattern is a potentially bullish candle pattern which forms during a forex downtrend. It is named so because the market is hammering out a market bottoms.

A hammer candlestick pattern has:

• A small body
• The body is at the top
• The lower shadow is 2 or 3 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 Candles

Technical Analysis of Hammer Candles Pattern

The buy signal is confirmed when a candle closes above the opening FX price of the candle on the left side of the hammer candlesticks pattern.

Stop-loss orders should be set a few pips just below the low of the forex hammer candle pattern.