What's a Hammer Candles Pattern?
What Does Hammer Candle Mean? Hammer Candlestick Definition
The Hammer candlestick pattern is a potentially bullish configuration that materializes during a prevailing downtrend. It earns its name from the appearance that the equities trading market is effectively "hammering" out a bottom price level.
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 color of the body isn't important
What's Hammer Candlestick in Stock Index? - Hammer Candle Pattern
Analysis of the Hammer Stock Trading Candles Pattern
A buy stock signal is verified when a candlestick closes above the opening stock price of the preceding candle, to the left of the hammer candlestick pattern in stock trading.
Stop orders should be placed a few pips just below low of hammer candle.
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