previous trends
an employer to qualify as a reverse pattern, there should be a prior trend to reverse. The Bulls need to be preceded by the Bears (a sellers' market previously had to be purchased). The direction of the trend can be determined by the use of trend lines, moving averages, or other aspects of technical analysis.
Hammer and Hanging Man
hammers as the hanged men were similar but the meanings are completely different, depending on previous price action. Both have small bodies, long strands down the leather or lack of (or very small) wicks at the top.
The figure below shows an example of Hammer and Hanging Man
Hammer
The pattern is a notice of change of upward trend (entry of the Bulls). So called because the price is being hammered down reaching its limit sales. Entering the Bulls took control of the market against the Bears and fail to finish the day in positive. Obviously this is a signal that must be accompanied by other technical analysis provided and we will see in the future.
The Hanged Man is a pattern of announcing the end of the uptrend Bulls losing ground to the Bears entered the market in a downtrend. But buyers are still strong enough to make the closing price near the opening. Buyers are signs of exhaustion ..
Inverted Hammer and Shooting Star
Inverted Hammer and Shooting Star also seem identical, but their meanings are opposites. Both have small bodies and long strands
The following figure shows an Inverted Hammer and Shooting Star
The Inverted Hammer occurs when the price has fallen and suggests the possibility of a turnaround. Buyers are trying to take control of the market and drive up the price, but vendors still have enough strength and make the price fall. But buyers were able to raise prices on something, and because the Bears were unable to reach a new day gives a negative signal exhaustion.
The Shooting Star would be contrary to Hammer, Los Osos attack strongly and the market are able to offset the Bulls, pushing back the price of its opening level. Signal a change in trend, which again should be subject to confirmation by other elements of technical analysis
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