Learn about candlestick patterns — the oldest type of technical analysis traders use to identify supply and demand trends for stocks and ETFs.
CIBC Investor’s Edge 4 minute read


(Figure 1: Hammer Candlestick Pattern) A hammer has a small real body and a very long lower shadow. The hammer occurs at end of an established downtrend.

Figure 1: Hammer candlestick pattern

Hanging man

(Figure 2: Hanging Man Candlestick Pattern) A hanging man has a small real body and very long lower shadow. The hanging man occurs at the end of an established uptrend.

Figure 2: Hanging man candlestick pattern

Engulfing Pattern

(Figure 3: Bullish Engulfing Pattern) Engulfing pattern at the end of a strong downward trend. The long white candlestick engulfs the preceding black candlestick.

Figure 3: Bullish engulfing pattern

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