Trading the hammer candlestick pattern

Trading the Hammer Pattern

[{"selector":"#anim-45113bbf-2dc2-4384-ae13-9367c24c057c","keyframes":{"opacity":[0,1]},"delay":250,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-deb0d00e-4416-4f62-9b83-d45391d47354","keyframes":{"opacity":[0,1]},"delay":400,"duration":3500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7aa0a422-e9a5-45b5-9c99-ddf0cafe6d20","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-da57838d-eff8-40b8-a07f-67b870c4464e","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-30b7cc11-af9a-4cc2-8a82-ba8b1ae7f177","keyframes":{"opacity":[0,1]},"delay":400,"duration":3500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] We will learn how to identity the pattern and then create a trading strategy to backtest Disclaimer: The information provided is solely for educational purposes and does not constitute a recommendation to buy, sell, or otherwise deal in investments.

identifying the pattern

[{"selector":"#anim-2d08635d-0026-4829-856a-9d86350b9c3b","keyframes":{"opacity":[0,1]},"delay":0,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-462ed101-5223-4326-90b0-d6e757d11e67","keyframes":{"opacity":[0,1]},"delay":650,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fa73742c-7ff8-46ec-becd-e7d372468e1e","keyframes":{"transform":["translate3d(0px, -130.43985%, 0)","translate3d(0px, 0px, 0)"]},"delay":650,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2df150ff-3c8a-4095-810a-d46bd996cf56","keyframes":{"transform":["translate3d(-169.68086%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cc5bb770-c5fa-4eee-8fc0-c2c6d0888d72","keyframes":{"opacity":[0,1]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-aaed41ac-7685-4aa5-ad53-1bb7fbd70b62","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-6c9572a4-d418-47ce-9df3-c725eec27652","keyframes":{"transform":["rotate(-89deg) translate3d(-370.09349%, 0px, 0) rotate(89deg)","rotate(-89deg) translate3d(0px, 0px, 0) rotate(89deg)"]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-38dd4a8d-01e8-49f1-8ad8-bbe8d4aa04dd","keyframes":{"opacity":[0,1]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1aeb448f-1afb-4bb0-bd42-36fc6f96ca30","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-e69e53a7-20be-4088-b581-a6d49a203376","keyframes":{"transform":["translate3d(-255.00002%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9d788d93-9be9-4b58-85f3-3e8100bb5a5d","keyframes":{"opacity":[0,1]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1d3df429-bc2a-4c5b-b154-9424687717bd","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Characteristic 1

[{"selector":"#anim-c4c4ba5d-ef46-46e0-b9c7-18b8d0e26538","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c3891a69-be72-4e33-a072-eeceae02f5ab","keyframes":{"transform":["rotate(-180deg) translate3d(130.20134%, 0px, 0) rotate(180deg)","rotate(-180deg) translate3d(0px, 0px, 0) rotate(180deg)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Arrow Learn more

Characteristic 2

[{"selector":"#anim-801cefa9-6830-4143-9b69-c72f0e4ce595","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f84888de-a324-46af-a9ff-e820e9ae5e72","keyframes":{"transform":["rotate(-180deg) translate3d(134.22818%, 0px, 0) rotate(180deg)","rotate(-180deg) translate3d(0px, 0px, 0) rotate(180deg)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Arrow

Characteristic 3

[{"selector":"#anim-b5b7c87e-13c3-4c44-a527-7602731c71de","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e2b517ab-6bc1-4b30-8ae6-6c55b6f9dd5a","keyframes":{"transform":["rotate(-180deg) translate3d(260.19416%, 0px, 0) rotate(180deg)","rotate(-180deg) translate3d(0px, 0px, 0) rotate(180deg)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Arrow

Trading the pattern

[{"selector":"#anim-1da2da57-0a60-4184-84b7-ac08f32868ea","keyframes":{"opacity":[0,1]},"delay":0,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8941f08b-fa96-494d-bce2-83042702fa43","keyframes":{"opacity":[0,1]},"delay":650,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9799abc4-da50-45a4-a44f-3957fd2cc175","keyframes":{"transform":["translate3d(0px, -130.43985%, 0)","translate3d(0px, 0px, 0)"]},"delay":650,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d824d486-4384-42c3-b5dd-df0a804de03c","keyframes":{"transform":["translate3d(-169.68086%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-10079c28-6d99-43e8-b4f1-0c0e1c2ff77e","keyframes":{"opacity":[0,1]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fb44a854-fb0c-49ca-a886-26b4c0d92bb5","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-019ada1e-fe41-4520-89e4-792291725e92","keyframes":{"transform":["rotate(-89deg) translate3d(-370.09349%, 0px, 0) rotate(89deg)","rotate(-89deg) translate3d(0px, 0px, 0) rotate(89deg)"]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7247f420-29ce-4f82-819e-e876c53169e6","keyframes":{"opacity":[0,1]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-230363e8-62c5-4e18-888a-d3a0a07d8cb2","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-7aedc83a-01d9-4a26-a599-40534d9fe325","keyframes":{"transform":["translate3d(-255.00002%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6f44f634-1ba6-4488-a54f-26f479f02ce4","keyframes":{"opacity":[0,1]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-36f0102c-7f50-4e66-80ef-a099e31cb716","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":900,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Correct time to trade?

[{"selector":"#anim-aae59ad4-dfe2-46ec-aa00-19c5bcb40c2c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

Check out the entire strategy

[{"selector":"#anim-bd1c2f5b-f9f6-4f02-a2e5-32955d080e47","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6c57b95a-ec5d-448b-ad17-096cc313f6b5","keyframes":[{"offset":0,"transform":"rotate(-90deg) translate3d(0, -1883.00591%, 0) rotate(90deg)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.29,"transform":"rotate(-90deg) translate3d(0, 0%, 0) rotate(90deg)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.45,"transform":"rotate(-90deg) translate3d(0, -529.501261892%, 0) rotate(90deg)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.61,"transform":"rotate(-90deg) translate3d(0, 0%, 0) rotate(90deg)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.71,"transform":"rotate(-90deg) translate3d(0, -180.01536499600002%, 0) rotate(90deg)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.8,"transform":"rotate(-90deg) translate3d(0, 0%, 0) rotate(90deg)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.85,"transform":"rotate(-90deg) translate3d(0, -67.599912169%, 0) rotate(90deg)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.92,"transform":"rotate(-90deg) translate3d(0, 0%, 0) rotate(90deg)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.96,"transform":"rotate(-90deg) translate3d(0, -29.374892196%, 0) rotate(90deg)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":1,"transform":"rotate(-90deg) translate3d(0, 0%, 0) rotate(90deg)","easing":"cubic-bezier(0, 0, .5, 1)"}],"delay":0,"duration":1600,"fill":"both"}] Arrow Learn more

Trading the Hammer Pattern

identifying the pattern

NEXT

Characteristic 1

Very Long Lower Wick

Characteristic 2

A small body in the upper section of the trading range.

Characteristic 3

Extremely small upper wick

Trading the pattern

NEXT

Correct time to trade?

Traders should look for the pattern after a sharp downtrend and near a support level.

Check out the entire strategy