Candlestick Piercing Pattern

The candlestick piercing pattern is a reversal in a down trending market similar to the bullish engulfing pattern and is therefore considered bullish. This pattern is made up of a long red (or black) stick, showing a price decline. It is then followed by a long green (or white) stick, showing a period [...]

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Hanging Man Candle

The hanging man candle is a reversal pattern in which a small real body forms at the upper end of the trading range with a long lower shadow with no, or almost no upper shadow. The longer the shadow is the more bearish the reversal. The hanging man occurs during an uptrend and [...]

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Inverted Hammer Candlestick
 
The inverted hammer candlestick is a bullish reversal pattern that occurs after a downtrend, at the support, or during a pullback within an uptrend. It is characterized by a long upper shadow and a small real body, preceded by a long red (or black) real body. In order to be considered an inverted [...]

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Candlestick Hammer Signal
 
The candlestick hammer signal is a bullish reversal pattern that forms after a decline, and signifies that the market is “hammering” out the bottom. In order to qualify as a hammer signal, there are three conditions that must be met. Before discussing these three conditions, let us review the construction required to form [...]

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Bearish Engulfing Pattern

The bearish engulfing pattern is a chart pattern that consists of a small green candlestick (or white) with short shadows or tails followed immediately by a large red (or black) candlestick that engulfs the green (or white) candlestick. To simplify, engulfing patterns are when the body of the second candlestick engulfs the first [...]

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