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.

Hammer - appears if there is a downward trend in the market, the candle itself is bullish, events during its formation develop according to the following scenario - at first there is an increase in sales and a sharp decrease in price, but after the situation changes and the closing price exceeds the opening price.

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

Hanging Man bears dominated throughout the time frame .