What Happens after a Hammer Candlestick Pattern? - Is Hammer Candlestick Bullish or Bearish?

Hammer candlestick pattern is a potentially bullish candle pattern which occurs during a forex downtrend. It is named so because the market is hammering out a market bottoms.

A hammer candlestick pattern has:

• A small body
• The body is at the top
• The lower shadow is two or three times 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 Happens after a Hammer Candlesticks Pattern? - Hammer Candlestick Pattern Bullish Pattern

Technical Analysis of Hammer Candles Pattern

The bullish reversal buy signal is confirmed when a candle closes above the opening price of the candle on the left side of the hammer candle pattern.

Stop-loss orders should be set a few pips just below the low of hammer candlestick once a trade is opened using this candlesticks pattern formation.