Hammer Pattern

Discuss the Hammer pattern here.

A hammer is a very significant candle, I see it as an entry signal depending on the trend of the pair in question (only for uptrend though), if on the daily chart the trend is up, I always fancy entering a trade after a hammer on the daily, my stop will usually go underneath the hammer. I understand every trader is different and I'm happy to read anyone's view on this.

The hammer is usually seen when trying to change one trend and run another. Again the hammer can be seen from the swing point.

Ive always like this candle pattern. The logic behind it is sound. The pressure from either side of the market has to be respected

Hammers take the point when, there is long downtrend and generally, it is a bullish reversal candle but must confirmed with next candlestick pattern.

blackChelsea posted:
Hammers take the point when, there is long downtrend and generally, it is a bullish reversal candle but must confirmed with next candlestick pattern.

Yes. The hammer provides the signal to create the swing point. And the role of the hammer in reversal is a lot.

Yes. The hammer provides the signal to create the swing point. And the role of the hammer in reversal is a lot.

Always a good opportunity to jump on Spotify and blast a bit of MC Hammer as you place the trade :D

It is definitely a solid indication but has to be a part of a much wider strategy. There is bias, market structure and timeframe of hammer too. But i definitely like it

In my opinion, hammer pattern greatly helps traders to determine the entry point. I always try to find whether bearish or bullish hammers in order to understand is it right time to enter the position or not. Of course, the vast majority of traders prefers to check the trends and support/level resistance, however I combine everything and I handle the task of finding a proper entry point. Moreover, sometimes you can determine the exit point due to hammers
So, I guess that it's a very universal pattern which should be learnt by novices.