Hammer Candlestick Chart Pattern

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Hammer Candlestick Chart PatternHammer 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



Hammer Candlestick Chart Pattern


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.
Hammer Candlestick Chart Pattern 
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