The Hammer and Hanging Man patterns go hand in hand and represent a bullish and bearish signal.

In this video trading expert David Jones breaks them down and shows us how to spot them on the chart, how to interpret their appearance and what to watch out for before making a trading decision.

At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.