Excellent Ideas for Trading

Hammer Candle 👌

Here I will provide you with a simple and quick explanation of the Hammer Candle, price structure, and entry and stop-loss areas.

Follow along with me.

The Hammer Candle pattern shows us that the initial selling pressure has been overcome by buyers, which means that more buyers have come in and demand is increasing.

■ Price Structure

The Hammer Candle has a short body at the top and a long tail at the bottom.

The tail below should be at least twice as long as the body. It's fine if the mentioned tail above is smaller than or equal to the body.

Entry and Stop-Loss 📉

(Illustration showing the formation of the Hammer Candle and the position for entry and stop-loss)

After the Hammer Candle forms, when the next candle crosses above the high of the Hammer Candle, we need to take an entry point and place a stop-loss order at the low price of the Hammer Candle.