Trade Stock Indices

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 setup 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
  • 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 colour of the body isn't important

What is a Hammer Candlestick in Indices Trading? - What's a Hammer Stock Candlestick in Stock Index Trading?

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.