Hammer/Hanging man.
This is a reversal signal,which indicates that there is a chance for change in the direction of price.
Features:
- When the candle appears in an uptrend it is called Hanging man.
See the chart above,the price was moving in upward direction and at the peak hanging man appeared. After that the price reversed its direction and started downward journey.
- When candle appears in a down trend it is called hammer.
