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.


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.