Bullish Hammer | Bullish Candlestick Pattern

➡️ A single candlestick pattern, the hammer is formed when the body of a candle is small & appears at the upper end of the trading range, with the length of its lower shadow being more than twice the length of its body. A hammer signals a potential change in sentiment in the stock, a likely trend reversal.

➡️ When the hammer is formed at the bottom of a downtrend, it’s called a bullish hammer. It indicates a new buying interest after several bearish sessions. The longer the shadow of a hammer, the more bullish it is.

➡️ Note that you should always combine candlestick patterns with other indicators & signals before entering any stock. A stop-loss can be placed at the low of the hammer.

➡️ In the case of Honeywell Automation Ltd. seen on a daily chart, a bullish hammer is being formed at the bottom of a downtrend and stands near its long-term support line.

💡 Use candlesticks & other modern tools to spot winning trades

Predict stock movements using candlestick chart patterns and other modern tools in Mr. Khagesh Agarwal’s Candlestick Trading Course.

None of the above stock ideas are intended as recommendations. Please consult a registered advisor before buying/selling.

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