Description
Hammer is a bullish trend reversal candlestick pattern which is a candle of specific shape.
The trend reversal can be predicted if occurring after the downtrend, this candle has a short body located in the top half of the trading range, absent or very short upper shadow, and long lower shadow.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of candles used to calculate the average body height. |
trend setup
|
The number of preceding candles to check if the trend exists. |
body factor
|
The factor used when checking if a candle is short. A candle is considered short if its body height is lower than the average multiplied by this factor. |
shadow factor
|
The factor used when checking if a shadow is long. A shadow is considered long if its length exceeds body height multiplied by this factor. |
Plots
| Plot | Description |
|---|---|
Bullish
|
The Hammer candlestick pattern. |
For educational purposes only. Not a recommendation of a specific security or investment strategy.
Technical analysis is not recommended as a sole means of investment research.
Past performance of a security or strategy does not guarantee future results or success.