Trading Technique

Different shapes of the candlesticks

Typical candlesticks & Marubozu
Doji
Hammer and Hanging Man & Shooting Star
High Wave & Engulfing Pattern
Dark Cloud Cover
Piercing Line

Harami
Morning and Evening Star and Abandoned Baby

Tweezers

4. Hammer and Hanging Man:

Hammer is kind of candlestick that can be seen at the bottom of a downtrend. Hammer has no or a very small lower shadow. The hammer candlestick which is seen at the top of an uptrend is called Hanging Man.

Hammer and Hanging Man have three identifying features:

1. The body is in the upper third of the price range.
2. The lower shadow is twice of the length of the body.
3. They have no or a very short upper shadow.

Like Doji, Hammer and Hanging man signal indecision and uncertainty and need confirmation.

5. Shooting Star:

It is an inverted hammer at the top of the uptrend. Its color can be Bullish or Bearish. A Shooting Star at the bottom of a downtrend, is called Inverted Hammer. Like Doji and Hammer, Shooting Star and inverted Hammer need confirmation.

A gap between the Shooting Start or Inverted Hammer and the next candlestick is one of the confirmations. A big Bearish candlestick after the Shooting Start is another confirmation. Generally, confirmation is something that confirms that the price has changed the direction.

( From The Language of Japanese CandleSticks - The Only Real Time Indicators)