HAMMER & HANGING MAN

BULLISH HAMMER: occur at the bottom of a trend or during a downtrend (it is hammering out of a bottom), the market prevails not shorter than an average candlestick, no or a very tiny upper downtrend, both up and down candlestick are acceptable, the lower shadow is at least twice as long as the body but not shorter than an average candlestick, no or a very tiny upper shadow, the Hammer’s body is lower than both of the two preceding down candlesticks. After decline ceased, the market returns to the high, the market fails to continue selling. If the body is up, it is better for the bulls, prices must cross above the top of the Hammer’s body level for confirmation.

BEARISH HANGING MAN: occur at the top of a trend or during an uptrend (looks like a hanging man), the, market prevails uptrend, both up and down candlestick are acceptable, the lower shadow of this candlestick is at least twice as long as the body but shadow, the top of the Hanging Man’s body is above both of the two preceding up candlesticks, selling pressure is starting to increase, the sellers pushed prices lower during the session. If the body is down, it is better for the bears.vel is defined as the midpoint of Hanging Man’s lower shadow. Prices must cross below the lower shadow for confirmation.