Top 4 Single Candlesticks Patterns in Technical Analysis

Top 4 Single Candlestick Patterns Hammer A hammer pattern is one of the most effective, yet least understood candlestick formations. It is a very good indication that the current downtrend is losing its momentum and that a reversal is very close on the horizon.

The hammer, as it is commonly known, is one of the most powerful bullish signals, and that's why it's also one of the most common patterns used by currency traders. There are several different types of hammers, but they all have one thing in common: the long black body of the candle is followed by a short, or sometimes even non-existent, trading period, during which the price moves sharply higher.

Key points about Hammer 1. The hammer should form at the bottom of a downtrend.

2. The shadows are several times longer than the original body.

3. The upper shadows are almost nonexistent.

4. The colour of the candle is not important, whether red or green.

Hanging Man The hanging man pattern is a bearish reversal pattern that occurs at the top of an uptrend. The pattern resembles a “man” that is hanging by its toes from a pole. The name of this pattern comes from the long wick of the candlestick that resembles the long sleeve of a man's hanging shirt.

A Hanging Man is an indicator that further losses are in the offing. You can find this pattern in any time frame A hanging man is a candlestick pattern that is characterized by a small real body and a long upper shadow. It occurs at the top of an uptrend and indicates that the bullish sentiment is beginning to fade.

Shooting Star A shooting star is a single reversal candlestick pattern that occurs at the top of an uptrend indicating that the price would fall. They are bearish reversal patterns, meaning that they indicate the price of the asset has reached a temporary peak before reversing. The shooting star pattern is a single candlestick pattern that occurs at the top of an uptrend.

Candlesticks represent the price movement of an asset over a given period of time. This pattern is formed when the price makes a large upward movement followed by a small downward movement.

A shooting star pattern is a chart that occurs when an asset market price is pushed up but rejected and closed near the open price. They will create a long upper and small lower wick

Inverted Hammer The Inverted Hammer candlestick formation is a bullish reversal pattern that occurs at the bottom of downtrends.

The Inverted Hammer formation is created when the open, low, and close are roughly the same price. Also, there is a long upper shadow which should be at least twice the length of the real body.

Now that you’ve understood the different types of single candlestick patterns that are used for trading price action in the stock markets, it’s time that we also learn how to trade them with practical examples. In the Single Candlestick Trading Course by LearnApp, Mr. Vishal Mehta teaches you how to trade single candlestick patterns with risk management.

In case you want to go in more depth on mastering price action; head over to the price action blog to learn about multiple candlestick patterns, types of trends that form while trading price action.