What is a Hammer Indices Candlesticks Pattern?
What Does Hammer Candlestick Mean? Hammer Candlestick Definition
Hammer stock indices candlestick pattern is a potentially bullish candlestick pattern that occurs during a downward indices trend. It is named so because the stock indexes trading market is hammering out a market bottom.
A hammer stock indices candlestick 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
What is a Hammer Candlestick in Indices Trading? - Hammer Candlestick Indices Candlestick Pattern
Technical Analysis of Hammer Candlesticks
The buy stock indices signal is confirmed when a candlestick closes above the opening stock indexes price of the candlestick on the left side of the hammer stock indices candlestick pattern.
Stop orders should be place a few pips just below the low of the hammer candlestick.