What's a Hammer Candles Pattern?
What Does Hammer Candle Mean? Hammer Candlestick Definition
Hammer stock candle setup is a potentially bullish candle stick pattern which forms during a downwards trend. It's named so because the stocks trading market is hammering out a bottom.
A hammer stock candle stick pattern has:
- A small body
- The body is at the top
- Lower shadow is 2 or 3 times length of real body.
- Has no upper shadow or very small upper shadow if present.
- The colour of the body isn't important
What's Hammer Candlestick in Indices Trading? - Hammer Candle Pattern
Analysis of Hammer Stock Trading Candlesticks Pattern
The buy stock signal is confirmed when a candle closes above the opening stock price of the candle on the left side of the hammer stock trading candle stick pattern setup.
Stop orders should be placed a few pips just below low of hammer candlestick.
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