Candle chart pattern to find out the reversal - Having a good trading strategy is the key to success in the forex trading business, that's why learning forex trading strategies is very important when you get into this business. If you have never studied chart patterns, it may be time for you to know the science of chart patterns to support your success in forex trading. Here we will discuss about Candle chart pattern to find out the reversal, to find out when the price will reverse, so that when you enter the forex market you don't get the wrong direction.
#Inverted Hammer And Shooting Star Pattern
The inverted hammer and shooting star patterns at a glance look the same. However, they are different and what distinguishes them is only the trends that have occurred before. Both of these patterns have small body shapes with long top shadows and little or no lower shadows. The pattern that occurs after a downtrend is called the "inverted hammer". On the other hand, if it occurs after an uptrend, this pattern is called a "shooting star". both of these patterns show signs of a reversal, so you as a trader at least know this one candle pattern.
#Hammer And Hanging Man Pattern
In general, the hammer and hanging man patterns have small candle bodies, both of which have long lower shadows and small or absent upper shadows. When the price is going down, the hammer pattern shows that the lower border is near and the price is going up again. At first glance, this candle pattern looks the same, but they both have different meanings.
By looking at a little explanation of the candle pattern above, of course you will better understand the types and patterns of reversal candles. This will help you learn the direction of the forex market when trading. So now you know candle chart pattern to find out the reversal , hope this information will help you get more profit.