The Hammer candlestick is mostly viewed as a bullish reversal candlestick pattern that occurs at the bottom of downtrends. The Hammer pattern is created when the open, high, and close prices are about the same price and there will be a long lower shadow, twice the length as the real body.
Top Trade Tips Using Hammers
Paul Hayes
Sales & Marketing
Email: [email protected]
Phone: (44) 203 289 6573
Website: https://clickalgo.com
Twitter | Facebook | Google+ | YouTube | Pinterest | LinkedIn
Top Trade Tips Using Hammers
- The candle must have either a very short upper shadow or no upper shadow at all.
- The candle’s lower shadow must be at least two times as long as the real body.
- The signal must occur after a clear downtrend.
- The candle’s body should be located at the upper end of the trading range. Its colour is unimportant, though a green candle hints at a more bullish effect.
- The signal should be confirmed the following day, with the price trading above the Hammer’s real body.
- Never confuse the Hammer candle with a Hanging Man, which looks identical but only forms at the end of uptrends, while the Hammer occurs after downtrends.
LEARN MORE ABOUT TRADING WITH THE HAMMER CANDLESTICK
Paul Hayes
Sales & Marketing
Email: [email protected]
Phone: (44) 203 289 6573
Website: https://clickalgo.com
Twitter | Facebook | Google+ | YouTube | Pinterest | LinkedIn