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 which forms during a downwards trend. It's called and 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 is a Hammer Candlestick in Stock Index? - What's a Hammer Stock Candlestick in Index?

What's Hammer Candlestick in Stock Index? - Hammer Candle Pattern

Analysis of the Hammer Stock Trading Candlesticks Pattern

The buy stock signal gets to be confirmed when a candle closes above the opening stock price of the candle to the left side of the hammer stock trading candlestick pattern formation.

Stop orders should be placed a few pips just below low of hammer candlestick.

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