Is Hammer Candle Pattern Bullish or Bearish?

Hammer candlestick pattern is a potentially bullish candlestick pattern that forms during a cfd downwards trend. It is named so because the cfd 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 2 or 3 times length of real body.
• Has no upper shadow or very small upper shadow if present.
• The color of the body is not important

What Happens in CFD after a Hammer Candlesticks Pattern? - Hammer Candle Pattern Bullish Pattern

Technical Analysis of Hammer Candlesticks Pattern

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

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