Reversal candles - "Hammer and Hangman".

These two practically indistinguishable Japanese candlesticks have long been recognized as harbingers of a reversal, although confirmation is required for a more accurate forecast.

Hammer and Hangman - have a relatively small body and only a lower shadow, which shows how much less the minimum is than the closing or opening price, and the shadow is several times larger than the main body.

In this case, the upper shadow is completely absent, that is, the closing (opening) price is higher than the maximum on a given time frame.

The candle can be either upward or downward; the direction of the short-term trend is decisive.

A hammer appears when the market is in a downtrend. The candlestick itself is bullish. The events that form follow this pattern: initially, selling increases and the price drops sharply, but then the situation reverses and the closing price exceeds the opening price.

The next candlestick usually serves as confirmation of a trend reversal; it should open and close at a higher price, thus confirming the beginning of an uptrend .

A hanging man occurs during an uptrend; the candlestick indicates a downward price trend, as the closing price failed to rise above the opening price, and the timeframe .