Whats your story? How can both, hanging man and shooting star, be bearish signs?

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

… while they look the exact opposite?

A good night story about what the market is actually doing, comparing both, would be greatly appreciated.

Is a very creative question :smiley:

I am serious. I like reading Price Action. Whats the story you think they tell while creating the same sign?

Any serious input appreciated.

Thanks

2

Maybe you should do a little research yourself …

3

The hangman and its opposite the gravestone from my POV have a great deal of difference from its cousin the hammer.

What is important in these appearances is their location in the price action. They are most reliable and power candle when located as an apex candle to a two or three bar reversal pattern.

While these are good for finding potential reversal patterns a trader should also investigate a few continuation candles and there related breakout patterns which are especially useful for trend traders, when to enter a trend.

4

Hanging man reflects powerful buying. This is a bullish continuation signal in an uptrend or a bullish reversal in a downtrend.

Shooting star is the reverse and is bearish.

However, neither is 100% reliable and if price action is powerful enough to overcome what each respective candle depicts, expect a powerful and dramatic move if price moves off in the “wrong” direction.

5

I think this site should be most helpful in your qwest.
Bulkowski’s Candlestick Patterns
http://thepatternsite.com/CandleEntry.html

6

Thanks for the tips