The hammer and the hanging man

Posted by

The hammer is a bullish reversal pattern found at the end of a downtrend. It is a single candle pattern consisting on a candle with a short body with a long lower wick but a short or ideally no upper wick. This is seen as a reversal pattern as the sellers tried to push the market lower but the buyer gained control driving the prices close to the opening price.

Screen Shot 2017-05-29 at 13.30.17
The hammer candlestick

The hanging man is a bearish reversal pattern found at the end of an uptrend. Also a single candle pattern but this time it also has a short or no upper wick but with a long lower wick. Showing the sellers are gaining control of the price causing it to drop.

Screen Shot 2017-05-29 at 13.29.32
The hanging man candlestick

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s