**Hammer and Hanging Man**
They are Japanese candlestick patterns that are similar in appearance but differ in their implications based on their position within the trend. Here is a breakdown of their characteristics and results:
1. **Hammer**:
- **Appearance**: The hammer candle has a small body at the upper end of the trading range, and a long lower shadow at least twice the length of the body. It has little or no overhead shadow.
- **Location**: The hammer appears after a downtrend.
- **Significance**: Indicates a possible reversal from a downward trend to an upward trend. A long lower shadow indicates that sellers pushed the price down, but buyers were able to push it back up, showing buying interest.
2. **Hanging Man**:
- **Appearance**: The hanging man has the same appearance as the hammer, with a small body at the upper end of the trading range, a long lower shadow and little or no upper shadow.
- **Location**: The hanging man appears after an uptrend.
- **Significance**: Indicates a possible reversal from an uptrend to a downtrend. A long lower shadow indicates that sellers tried to push the price down, and although buyers were able to push it back up, the presence of selling pressure is a warning signal.
**Basic differences**:
- **Trend context**: The Hammer appears in a downtrend and suggests a potential bullish reversal, while the Hanging Man appears in an uptrend and suggests a potential bearish reversal.
- **Confirmation**: Both patterns usually need confirmation from subsequent price action. For a Hammer, confirmation is a bullish candle that follows. For the Hanging Man, confirmation is a bearish candle that follows.
In short, although Hammer and Hanging Man look similar, their meanings and connotations differ based on their position in the trend. They do not give the same result because they indicate different potential market movements.
good luck for everbody
Dr.. Omar Al-Zawawi
