What is a Hammer Candlestick in Forex? - What is a Hammer Candles Pattern in Forex?
What Does Hammer Candle Mean? Hammer Candle Definition
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 is Hammer Candlestick in Forex? - Hammer Candlestick Trading Candle Pattern
Technical Analysis of Hammer Candles - Candle Pattern
The 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 orders should be set few pips just below the low of the hammer candle.
