Hammer candlestick pattern

 Hammer candlestick pattern has a small body at the top with a shadow on the bottom. The shadow is at least twice as long as the small body.

Criteria

1. Found at the bottom of a downtrend.

2. The color of the body is not important (however, a blue body is slightly more bullish than a red

body).

3. There should be no upper shadow or a very small upper shadow.

4. The longer the lower shadow the more powerful the reversal signal.

5. The following candle needs to confirm the Hammer signal with a strong bullish move.

Hammer candlestick pattern

Hammer candlestick pattern