The market is characterized by a downward trend. A small body is observed at the upper end of the trading area. The color of the body is not important.
The lower shade of the candle holder is at least twice as long as the body.There are (almost) shadows no more.
Samples and flexibility requirements.The body of the hammer must be weak. The lower shade should be at least twice as long as the body, Forex candlestick patterns but not shorter than your average candle holder. It is desirable that there is not very small upper shade. The lower body of the hammer must be lower than the two previous black candles.
This pattern occurs at the lower end of a trend or a downward trend during and is considered a hammer because it is hammering down. It is a unique candle model that has a lower shade and a small body very near or at the top of the price range per day.
Dealer behavior The bullish hammer translates into a downward trend and is sold heavily after market opening. After the end of the recession in the market almost returns back to the top of the day. Obviously, the market side of the sale can not continue. This observation can be reduced to the previous bearish sentiment, short traders with their bearish positions feeling more and more uncomfortable. When the body of the hammer is white, the situation for the bulls seems even better.
Levels / Stop Loss Purchase
The level of loss is defined as the last minimum. When the fall after buying the courses, instead of going up, and two daily lows below the stop-loss level near or nearby candlestick patterns , while no bearish pattern is detected, the stop-loss will be activated.
The acknowledgment level is defined as the upper part of the hammer body. Prices have to confirm your choice at this level.