Posts Tagged ‘hammer’

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Hammer and Hanging Man Chart Patterns

In this video, you will learn about the hammer and the hanging man candlestick reversal patterns. The hammer is a single candlestick pattern found at the end of a downtrend. It consists of a candlestick with a small body with a long wick, twice the size of the actual body. The colour of the body of the candlestick does not matter. The psychology behind this pattern is that the sellers initially have the control, but then the buyers arrive, and push the prices […]

Bullish Hammer — Candlestick Pattern

In this video, you will learn about the bullish hammer candlestick pattern. This is a bullish reversal pattern, which you can locate at the end of a downtrend. This is a single candlestick pattern. This pattern consists of a small body with a long lower wick. The length of the lower wick is twice the length of the body of the candlestick. There can be little or no upper shadow. You can trade a long entry […]

Candlestick Pattern — Hanging Man and Hammer

The hammer and the hanging man candlesticks look similar but they have different interpretations. Firstly, the hammer is a bullish reversal candlestick, which means you can spot this candlestick at the end of the downtrend. The color of the body does not matter much. But the wick should be two times the size of the actual body. The idea behind this pattern is that the bears initially manage to hold control of the market and then push […]

Confusion Between Hammer and Hanging Man Candlestick Patterns

Among all the single candlestick patterns the hammer and the hanging man are very commonly used by the traders. Lots of confusion arises as they look exactly alike, but you have totally different meanings depending on past price action. If they are identified incorrectly, it can cause a lot of problems to the traders. Hammer and hanging man, both have little bodies, long lower shadows, and short or absent upper shadows. […]

Bullish Candlestick Chart Pattern — Bullish Hammer

This pattern occurs at the bottom of a downtrend. This is a single candlestick pattern that has a long lower shadow with a very small body or very near the top of its daily trading range. Recognition criteria: The market is characterized by a prevailing downtrend. A small body at the upper end of the trading range is observed. The color of the body is not so important. The shadow of this candlestick is at least twice as the length of the body. […]

What Is a Hammer Chart Pattern?

A price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies later to close either above or close to its opening price. This pattern forms a hammer shaped candlestick. When you see the hammer form in a downtrend, this is a sign of a potential reversal in the market as the long lower wick represents a period of trading where the sellers were initially in control, but the buyers […]

Forex Candlestick Tutorial — Part 12 — Hammer Trading Research

This is part 12 of the tutorial. In this video, you will look at the hammer trading research. Looking at the chart, we have a hammer at the bottom of the downtrend. This is an indication that the downtrend has exhausted with its energy and an uptrend is about to start. We have a series of red candles and the price is making lower lows and lower highs. We have this hammer candle right at the oversold condition. The following […]

Forex Candlestick Tutorial — Part 11 — Hammer Pattern

This is part 11 of the tutorial. In this video, you will learn about the hammer candlestick pattern. The hammer is essentially a dragonfly doji formation with a slightly bigger body. The hammer is formed when the opening price (O) and the closing price (C) occur near the same level. The vertical line represents the lowest trading range (L) of that specific timeframe. The hammer pattern is formed when the following two […]

Hammer and Hanging Man Candlesticks

A Hammer is a bullish reversal signal and it has a small real body, very small or no upper shadow and a long lower shadow. For it to be a proper hammer the lower shadow needs to be atleast twice the size of the real body. We look for a hammer in a downtrend. A Hammer seen after a strong down move at support is a very strong reversal signal. It indicates that the bulls may be ready to take […]

Tricky candles

This is a video on 2 Candlestick patterns — Hammer and Shooting star pattern. This video teaches you how to recognise them and to utilise them to your trading.