What's a Hammer Candlestick in Forex? - What's Hammer Candles Pattern in Forex?
What Does Hammer Candle Mean? Hammer Candle Definition
Hammer forex candlestick pattern is a potentially bullish candle pattern that forms during a forex downtrend. It is named so because the market is hammering out a market bottoms.
A hammer candle pattern has:
- A small body
- The body is at the top
- The lower shadow is 2 or 3 times the 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 Candle Pattern
Technical Analysis of Hammer Candles - Forex Candle Pattern
The buy trading 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 a few pips just below low of the hammer candle.
