Bullish Candlestick Reversal Pattern

-This types of candlestick pattern could be found in a downtrend.


1)Hammer (green or red doesn't matter)

It is similar to hanging man but it happens only in an uptrend and having a green body
It has a small body with little or no upper shadow and a long lower shadow (at least 2 times the length of real body) The longer the lower shadow, the higher potential of reversal occurring.
Interpretation        It is a bullish reversal pattern found in a downtrend.

Bearish Candlestick Reversal Pattern

-This type of candlestick pattern could be found during an uptrend. But when these type of candlestick
reveal itself, be prepare of a downtrend in soon. 


1) Hanging Man (green or red doesn't matter)

It has a small body with little or no upper shadow and a long lower shadow (at least 2 times the length of real body) The longer the lower shadow, the higher potential of reversal occurring.
see the picture below to understand better.

Interpretation

A bearish pattern during a uptrend.

Understand Candlestick Pattern

 What is candlestick

Candlestick is one of the display shown in the charting. With just a candlestick it is able to tell you
the opening price , closing price, high, low. 

Candlestick is able to give you more information about the traders sentimental towards the market.

Whether are they pessimistic or optimistic toward a currency-pair.

Some candlestick pattern is a symptom of reversal.

To simplify things up for new trader.

When looking at a charting in candlestick, imagine that you are looking at 2 animal fighting on a beach.

The 2 animal are bear and bull.

The red candlestick represent the strength of the bear,

The green candlestick represent the strength of the bull.

In this example, the red candlestick is bigger than the green candlestick.

Bear is overpowering the bull. 

This is a bearish representation in candle stick theory.

We call this bearish engulfing candle stick.

In this example, the green candlestick is bigger than the red candlestick.

Bull is overpowering the Bear. 

This is a bullish representation in candle stick theory.

We call this bullish engulfing candle stick.

 * If you like to know more about candlestick pattern. You could refer to www.babypips.com