All patterns that a Trader must know -
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(Free PDF inside)
Hammer
- bullish signal, consisting of a short upper body and longer lower wick.
- forms because the prices bounced back even after selling pressure.
- hammer at the bottom of a downtrend indicates that the trend has changed to bullish.
Hanging Man
- A hammer formation at the top of an uptrend.
- It is a bearish signal indicating the end of the uptrend.
- The long lower wick indicates that the buyers have tried to keep the prices up but the sellers are gaining control.
Inverted Hammer
- If it forms at the bottom of a downtrend is a bullish trend reversal signal.
- It indicates that the buyers were able to resist selling pressure as sellers were not able to take the price down much.
- View confirms by a green candle afterward.
Shooting Star
- inverted hammer formation at the top of an uptrend.
- It is a bearish trend reversal signal.
- The long upper wick indicates that the buyers were not able to take the prices up, as sellers are gaining control.
- confirm by red candle afterwards.
