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Hammer Candlestick 7 25 2017

The hanging man and the hammer are both candlestick patterns that indicate trend reversal. The only difference between the two is the nature of the trend in which they appear. If the pattern appears in a chart with an upward trend indicating a bearish reversal, it is called the hanging man. If it appears in a downward trend indicating a bullish reversal, it is a hammer. Apart from this key difference, the patterns and their components are identical. Both consist of a single candlestick with a real body near the top of the candle, a long lower wick at least twice the length of the body and little to no upper wick.

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