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Here you will find everything about Hammer Candlestick Pattern.
What is a Hammer Candlestick?
Hammer is a single candlestick pattern, that occurs in a downtrend when bulls make a start to step into the rally. It is so named because it hammers out at the bottom of the share or any script. The lower shadow of a hammer is a minimum of twice the length of the body. Although, the color of the body is not of much significance a Green candle shows slightly more bullish implications than the Red body.
Criteria for Performing Hammer
1. The lower shadow must be a minimum of two times the length of the body.
2. There must be no upper shadow or a very small upper shadow.
3. The actual body is on the upper end of the trading range.
4. The next day needs to confirm the Hammer signal with a powerful bullish day.
5. The color of the body is just not essential though a Green body should have slightly extra bullish implications.