Hammer Candlestick Chart Pattern

Hammer candlestick pattern is a single candlestick chart pattern. It can be seen in a chart most often time than other candlestick chart pattern. That means you may get this pattern in your candlestick chart very often.

The candlestick pattern is seen in a down trend.

Its long lower shadow indicates that seller pushed the market lower but buyer have been able to make up the price.


Direction:-- Bearish or Downtrend

Type of this pattern: reversal

Reliability on this pattern: Moderate

If its high and close are same, and after it a bullish candlestick forms, Than it is a perfect buying signal from the candlestick pattern. On the contrary, if its high and open are same then its is less bullish emphasis than the previous setup.

However to trade with this pattern, don't be aggressive. Wait for a confirmation bullish candle. If a bullish candle forms after a hammer, You can consider the signal to trade.

 

Major Factors about Hammer Candlestick Chart Pattern...

1. A nice downtrend.

2. Lower shadow will be at least twice of the real body.

3. Real body bullish. If it is bullish that is better.

 

                                         Candlestick Chart Patterns                                   

01	How to Read A Candlestick Chart
02	Bearish Engulfing
03	Bullish Engulfing
04	Doji
05	Dragonfly Doji & Gravestone Doji
06	Piercing Pattern
07	Morning star
08	Dark cloud cover
09	Hammer
10	Hanging Man
11	Harami
12	Inverted Hammer
13	Evening star
14	Shooting star
15	Tweezers Top
16	Tweezers Bottom
17	Windows
16	The Last Discussion on Japanese Candlestick Chart