In this article, We learn about “Hammer”.Let’s Go!
A Hammer is a single Japanese candlestick pattern.
It is a black or white candlestick consisting of a small body near a high, with little or no upper shadow and a long lower shadow (or tail).
When
forms during a downtrend , the bullish pattern is considered a bullish pattern.
In summary, the hammer candlestick occurs during a downtrend and displays a longer lower shadow with a smaller real body at the top of the range.
The price may be bottoming and about to reverse upward.
The hammer candlestick pattern should meet the following conditions:
- The candle must have a very short upper shadow or no upper shadow at all.
- The lower shadow of the candle must be quite high (at least twice the height of the candle body).
- candle must be formed after a clear downtrend.
- candle should be at the upper end of the trading range.
- The color of the real body does not matter (although white candles imply a more bullish bias).
- candle should be confirmed the next day with price trading above the hammer.
The
The body of the
The
Don’t confuse the hammer with the hanging man.
The
hanging man looks the same but only forms at the end of the uptrend , while the hammer forms after the downtrend .
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