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Bullish Stock Index Candlestick Patterns and Bearish Stock Index Candlestick Patterns

Bullish Stock Index Candlestick Patterns Tutorial and Bearish Stock Index Candlestick Patterns Tutorial

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


These reversal candlestick patterns are:


  1. Hammer Stock Indices Candlestick Pattern and Hanging Man Stock Index Candlestick Pattern
  2. Inverted Hammer Stock Indices Candlestick Pattern and Shooting Star Stock Index Candlestick Pattern
  3. Piercing Line Stock Indices Candlestick Pattern and Dark Cloud Cover Stock Index Candlestick Pattern
  4. Morning Star Candlesticks and Evening Star Candlesticks
  5. Engulfing Stock Index Candlesticks Patterns


Hammer Stock Indices Candlestick Pattern and Hanging Man Stock Indices Candlestick Pattern

Hammer Stock Indices Candlestick Pattern and Hanging Man Stock Indices Candlestick Pattern candlesticks look alike but hammer is bullish reversal stock indices pattern and hanging man is a bearish reversal stock indices pattern.

Reversal Candlestick Stock Index Chart Patterns: Hammer Stock Indices Candlestick Pattern and Hanging Man Stock Index Candlestick Pattern candlesticks

Hammer Stock Indices Candlestick Pattern and Hanging Man Stock Indices Candlestick Pattern



Hammer Candlestick

Hammer is a potentially bullish pattern that occurs during a stock indices downward trend. It is named so because the stock indices market is hammering out a market bottom.


A hammer has:


  • A small body
  • The body is at the top
  • The lower shadow is two or three 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 candlesticks reversal stock indices chart patterns

Hammer Candlestick



Technical Analysis of Hammer Candlesticks

The buy stock indices signal is confirmed when a candlestick closes above the opening stock index price of the candlestick on the left side of the hammer candlestick pattern.


Stop orders should be place a few pips just below the low of the hammer candlestick.



Hanging Man Candlestick

This stock indices pattern is a potentially bearish reversal stock indices signal that occurs during a stock indices upward trend. It is 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 two or three 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


hanging man reversal candlestick stock indices chart patterns

Hanging Man Candlestick


Technical Analysis of Hanging Man Candlesticks

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


Stop orders should be place a few pips just above the high of the hanging man candlestick.


 

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S&P500, Nasdaq100, Dow Jones Industrial Average 30 - DJI30, Nikkei225, BSE SENSEX, MSCI World, Nasdaq Composite, DAX PERFORMANCE-INDEX, FTSE100 Index, Hang Seng Index, KOSPI Composite Index, CAC40, IBOVESPA, Hang Seng H-Financials Index, VIX CBOE Volatility Index, S&P/TSX Composite Index, S&P/TSX Composite Index, SZSE Component Index, FTSE All-World index series, S&P/ASX200, EUROSTOXX50, SSE Composite Index, BEL20, MOEX Index, Straits Times Index, Indice de Precios y Cotizaciones, Russell2000 Index, NYSE Composite, S&P/NZX50 Index, MERVAL, All Ordinaries Index, FTSE Bursa KLCI, TA-125 Index, NYSE Amex Composite Index, EURONEXT100 Index, Swiss Market Index - SMI, IBEX 35, AEX index, Capitalization-weighted index, OMX Stockholm30 - OMXS30, IDX Composite, WIG20, PSE Composite Index, BIST100, FTSE MIB, TA-35 Index, Tadawul All Share Index (TASI)