NEWS TRADING EDUCATION FORUMS CALENDAR TOOLS MarketMilk™ Sign In | Join

babypips

BREAKING: BabyPips.com Launches MarketMilk™ – A Brand New Technical Analysis Tool That Provides Fresh Market Insights!

School of Pipsology Elementary

Elementary
Single Candlestick Patterns Sign in to unlock progress tracking.

View All Courses

What is a Japanese Candlestick?

Learn how to use single candlestick patterns to identify potential
market reversals. Japanese Candlestick Anatomy

Basic Japanese Candlestick

Patterns
Here are the four basic single Japanese candlestick patterns:
Single Candlestick Patterns

Hammer and Hanging Man Dual Candlestick Patterns

Triple Candlestick Patterns

The hammer and hanging man look exactly alike but have totally
different meanings depending on past price action. Japanese Candlestick Cheat
Sheet

Both have cute little bodies (black or white), long lower shadows, Candlesticks with Support and
Resistance
and short or absent upper shadows.

Schools of Pipsology
Your Overall Progress Report

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
More Info Accept
Please read our privacy policy for more information on what we track and why.
 168 of 334
Lessons Completed

Unlock Tracking, Sign In

Partner Center
Find a Broker

The hammer is a bullish reversal pattern that forms during a

downtrend. It is named because the market is hammering out a
bottom.

When price is falling, hammers signal that the bottom is near and
price will start rising again.

The long lower shadow indicates that sellers pushed prices lower,
but buyers were able to overcome this selling pressure and closed
near the open.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
More Info Accept
Please read our privacy policy for more information on what we track and why.
 Just because you see a hammer form in a downtrend doesn’t mean
you automatically place a buy order! More bullish confirmation is
needed before it’s safe to pull the trigger.

A typical example of confirmation would be to wait for a white

candlestick to close above the open to the right side of the hammer.

Recognition Criteria for Hammer:

The long shadow is about two or three times of the real body.
Little or no upper shadow.
The real body is at the upper end of the trading range.
The color of the real body is not important.

The hanging man is a bearish reversal pattern that can also mark a
top or strong resistance level.

When price is rising, the formation of a hanging man indicates that

sellers are beginning to outnumber buyers.

The long lower shadow shows that sellers pushed prices lower
during the session.

Buyers were able to push the price back up some but only near the
open.

This should set off alarms since this tells us that there are no buyers
left to provide the necessary momentum to keep raising the price.
We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
More Info Accept
Please read our privacy policy for more information on what we track and why.
 Recognition Criteria Hanging Man:

A long lower shadow which is about two or three times of the

real body.
Little or no upper shadow.

The real body is at the upper end of the trading range.

The color of the body is not important, though a black body is

more bearish than a white body.

Inverted Hammer and Shooting Star

The inverted hammer and shooting star also look identical. The only
difference between them is whether you’re in a downtrend or
uptrend.

An inverted hammer is a bullish reversal candlestick.

A shooting star is a bearish reversal candlestick.

Both candlesticks have petite little bodies (filled or hollow), long

upper shadows, and small or absent lower shadows.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
More Info Accept
Please read our privacy policy for more information on what we track and why.
 The inverted hammer occurs when price has been falling suggests
the possibility of a reversal. Its long upper shadow shows that buyers
tried to bid the price higher.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
More Info Accept
Please read our privacy policy for more information on what we track and why.
 However, sellers saw what the buyers were doing, said “Oh heck
no!” and attempted to push the price back down.

Fortunately, the buyers had eaten enough of their Wheaties for

breakfast and still managed to close the session near the open.

Since the sellers weren’t able to close the price any lower, this is a
good indication that everybody who wants to sell has already sold.

And if there are no more sellers, who is left? Buyers.

The shooting star is a bearish reversal pattern that looks identical

to the inverted hammer but occurs when price has been rising.

Its shape indicates that the price opened at its low, rallied, but pulled
back to the bottom.

This means that buyers attempted to push the price up, but sellers
came in and overpowered them. This is a definite bearish sign since
there are no more buyers left because they’ve all been murdered.

Next Lesson
Dual Candlestick Patterns

What to Read Next...

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
More Info Accept
Please read our privacy policy for more information on what we track and why.
 CAD Weekly Review (Feb. 24 – 28) EUR & CHF Weekly Review (Feb. NZD Weekly Review (Feb. 24 – 28)
24 – 28)
13 hours ago a day ago
13 hours ago

AUD Weekly Review (Feb. 24 – 28) JPY Weekly Review (Feb. 24 – 28) 3 Most Overlooked Forex Trading
Risks
a day ago a day ago
a day ago

You don't have to be great to start,

but you have to start to be great.
- Zig Ziglar

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
More Info Accept
Please read our privacy policy for more information on what we track and why.
LEARN FOREX FOREX TOOLS COMPANY
 Forex News MarketMilk™ About
babypips
Forex Trading Course Economic Calendar Contact
BabyPips.com helps individual traders learn how to trade the forex market.
Forex Quizzes Trader Personality Test Advertise
We introduce people to the world of currency trading, and provide educational
Forex Forums Position Size Calculator Newsletter content to help them learn how to become profitable traders. We're also a
community of traders that support each other on our daily trading journey.
Forex Glossary "Back to Breakeven" Calculator Testimonials

Pip Value Calculator FAQ

Pivot Point Calculator

Copyright © 2020 BabyPips.com LLC. All rights reserved. Privacy Policy Risk Disclosure Terms of Use

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
More Info Accept
Please read our privacy policy for more information on what we track and why.