Trade Stock Indices

Is Hammer Stock Indices Candlestick Pattern Bullish or Bearish?

Hammer candlestick pattern is a potentially bullish candle pattern which forms during a downwards indices trend. It is named so because the stock indices trading market is hammering out a market bottom.

A hammer stock indices trading candle pattern has:

  • A small body
  • The body is at the top
  • The lower shadow is two or three times the length of the real body.
  • Has no upper shadow or very small upper shadow if present.
  • The color of the body is not important

Hammer Indices Candlestick Setup Bullish Trading Setup

Hammer Candle Pattern Bullish Pattern

Technical Analysis of Hammer Candles Pattern

The bullish reversal buy stock indices signal is confirmed when a candle closes above the opening stock indices price of the candle on the left side of the hammer trading candle pattern.

Stop-loss orders should be set a few pips just below the low of the hammer candlestick once a trade is opened using this candlesticks pattern formation.

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