Types of Hammer Candlestick - Inverted Hammer Bullish Candlesticks
Hammer Bullish Forex Candlestick Patterns - Reversal Forex Candlestick Chart Patterns
Reversal forex candlestick patterns occur after an extended prior trend. Therefore, for a forex candlestick pattern to qualify as a reversal candlestick pattern there must be a prior trend.
These reversal candlestick patterns are:
- Hammer Candle Pattern & Hanging Man Candle Pattern
- Inverted Hammer Candle Pattern & Shooting Star Candle Pattern
- Piercing Line Forex Candlestick Pattern & Dark Cloud Cover Candle Pattern
- Morning Star Forex Candlestick and Evening Star Forex Candlestick
- Engulfing Candlestick Patterns
Hammer Candlestick Pattern and Hanging Man Candlestick Pattern
Hammer Candle Pattern and Hanging Man Candlestick Pattern forex candlestick look alike but hammer is bullish reversal candlestick pattern and hanging man is a bearish reversal candlestick pattern.
Hammer Candle Pattern vs Hanging Man Candle Pattern
Hammer Candle Patterns
Hammer is a potentially bullish pattern which occurs during a forex downward trend. It is named so because the market is hammering out a market bottoms.
A hammer 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 Forex Candle
Forex Analysis of Hammer Candle Patterns
The buy trading signal is confirmed when a forex candlestick closes above the opening price of the forex candlestick on the left side of the hammer candle pattern.
Stop orders should be set a few pips just below low of the hammer candle.
Inverted Hammer Bullish Forex Candlestick - Reversal Candle Patterns
Inverted Hammer Candlestick Pattern and Shooting Star Candlestick Pattern forex candlestick look alike. These have a long upper shadow and a short body at the bottom. Their color does not matter. What matters is the point where they appear whether at the top of a market trend (star) or the bottom of a market trend (hammer).
Difference is that inverted hammer is a bullish reversal candlestick pattern while shooting star is a bearish reversal candlestick pattern.
Upward Trend Reversal - Shooting Star Forex Candlestick
Downward Trend Reversal - Inverted Hammer Forex Candlestick
Inverted Hammer Candlestick Pattern and Shooting Star Candlestick Pattern Forex Candlestick Chart Patterns
Inverted Hammer Forex Candlesticks
This is a bullish reversal candle stick pattern. It forms at the bottoms of a Forex trend.
Inverted hammer occurs at the bottom of a downward trend & indicates the possibility of reversal of the downwards Forex trend.
Inverted Hammer Forex Candles
Forex Analysis of Inverted Hammer Forex Candlesticks
A buy is confirmed when a forex candlestick closes above the neckline, this is the opening of the forex candlestick on the left side of this pattern. The neck line region in this acts as a resistance zone.
Stop orders for the buy trades should be set few pips below lowest price on the recent low.
An inverted hammer is named so because it indicates that the market is hammering out a bottoms.
