Since you’re familiar with important fundamental candlestick patterns like spinning tops, marubozus, and dojis, let’s cover some key single candlestick patterns. The following four single candlestick patterns often signal a potential market reversal. The first of the single candlestick patterns we’ll discuss is the Hanging Man and the Hammer, which look identical but derive their meaning from past price action. Their bodies are different (black/red or white/green), their lower shadows are long, and their upper shadows are either non-existent or very short. In a downtrend, a Hammer often indicates that the market is ... (full story)