About "Hammer Candlestick Pattern "

Asslam.u.Aliakum Dear members -

Dear friends umeed ha k ap sab kheriat sa hon ga, Dear traders forex trading risky business ha is man traders ko bhot losses hota hay. Isliye trading ko acha sa seekh ker karain.Aur har bar trade open karny se pehly market ko achy se analysis karny ky bad trade karni chahy,ham apni jald bazi ki wajah se aksar lose main chaly jaty hain.

Candlesticks Patterns:

Friend forex trading k doran trader currency pairs aur commodities ki price movements ko smajhna k liye price chart ko read kerta ha, q k price chart patterns man changes, momentum aur price k trend man change ko accuracy k sath identify kerta ha. Candlestick Patterns currency pairs aur commodities k price chart man price ki movement ko track kerna k liye use hona wala most important technical tool han. Trader forex trading man kisi b currency pair ya commodity ko buy/sell kerna k liye candlestick patterns per depend kerta ha. Aj man apka sath ,Hammer Candlestick Pattern, per trading k related apna knowledge share krta hun.

Hammer Candlestick Pattern:

dosto hammer candlestick bhot important candlestick hai or es ki formation ki bat karyn to es candlestick ki long wick hoti hai or es ki body small hoti hai. Agr dekha jaye to es ki wick es ki body ki lenght k double in size hoti hai. Ye candle chart ma frequently nazar ati hai or ye trend k bary ma analysis karny ma help karti hai. Hammer candlestick downward trend k end par nazar ati hai or ye indicate karti hai k market ma bullish trend any wala hai. Es candlestick ki 2 types hoti hai but important en ma bullish hammer candlestick ko he samja jata hai. Bullish hammer candlestick ki small bullish body hoti hai or long tail hoti hai.

"Hammer Candlestick Pattern in Price Chart"

Hammer Candlestick Pattern price k bullish trend ko bearish trend man change ker deta ha is liye is pattern ko Bullish Candlestick Pattern kehta han. Hammer Candlestick Pattern two candles per moshtamil hota ha.


A! Is pattern man first candle Day-1 ki Hammer Candlestick banti ha, jo buyers aur sellers k dermiyan indecision ko batati hai.

B ! Is pattern man second candle Day-2 ki long real body ki bullish candle banti ha, jo first candle ki real body k sath gap-up k sath open hoti hai.
Hammer Candlestick ki lower long wick no price action area man banna bhot zarori ha. Ager long wick no price action man ho to ye candle trend reversal ka signal deta ha lakin ager long wick price action area man ho to isko ""Fake Hammer Candlestick"" kehta han aur ye current trend ki continuation ka signal deti hai.

Trade with Hammer Candlestick :

Dear members is topic main apko bahut impirtant bat discussion karin gy ,Hammer Candlestick Pattern pr trading krny k liye trader ko es pattern ko complete hona ka wait krna chahiye Jb yeh pattern complete ho jay to trader ko chaheye k wo new candle k open pr buy ki trade lga dy or safe trading k liye zaruri hy k trader es trade k sath Stoploss or Take Profit ka use krein. Hammer Candlestick Pattern pr trading k doran trader ko Stoploss hammer candlestick ke low sy down place per aur Take Profit ko next resistance levels pr place karain is pattern ko smjhny k liye hmary pas knowledge k Hona bht zaruri Hy.agr knowledge nahi hoga to hum is main acha kam aur achi trade nahi laga sakty . pattern ky complete hony ky bad hi hamin apni trade open karni chahy , trading main Stop loss hmary account ko save bnata hay .

Re: About "Hammer Candlestick Pattern "

Asalamualikum dear members ummed Hy ap sb khariyat Sy hon gy or forex py mehnat kr k kamyabi hasil kr rhy hon gy.dear members aaj hm apni post mein hammer candlestick pattern k bary mein baat krein gy.



Hammer candlestick pattern :

Hammer candlestick aik small body ke bullish/bearish candle hoti hy. jis ka lower wick long hota hy or upper wick smaller ya zero hota hy. Hammer candlestick ka upper wick es ke real body k double sy bra hona zaruri hy. Yeh candle currency pairs or commodities k price chart main long bearish trend k bottom pr commonly bnney wali candle hy. Yeh candle buyers or sellers k drmiyan indecisions ko btati hy.


Identification of hammer candlestick :

Hammer Candlestick Pattern aik bullish trend reversal candlestick pattern hy. jo currency pairs or commodities k price chart main long bearish trend k bottom pr bnta hy or es k bd price bht tezi sy oper jati hy.

Formation of candles :

Hammer Candlestick Pattern price k bullish trend ko bearish trend main change kr deta hy es liye es pattern ko Bullish Candlestick Pattern kehty hain. Hammer Candlestick Pattern two candles per mushtamil hota hy.



First candle :

Day-1 ke Hammer Candlestick banti hy, jo buyers or sellers k dermiyan indecision ko btati hy.

Second candle :

Es pattern main second candle Day-2 ke long body ke bullish candle banti hy, jo first candle ke body k sath ""gap-up"" k sath open hoti hy.



Trading strategy :

Hammer Candlestick Pattern pr trading krny k liye trader ko es pattern ko complete hona ka wait krna chaheay. Jb yeh pattern complete ho jy to trader ko chaheay k wo new candle k open pr buy ki trade lga dyn or safe trading k liye zaruri hy k trader es trade k sath Stop loss or Take Profit ka use krein. Hammer Candlestick Pattern pr trading k doran trader ko Stop loss hammer candlestick ke low sy down place krein or Take Profit ko next resistance levels pr place krein.es pattern ko smjhny k liye hmary pas knowledge Hona bht zaruri Hy.

Re: About "Hammer Candlestick Pattern "

The hammer and the inverted hammer candlestick patterns are among the most popular trading formations.
Both are reversal patterns, and they occur at the bottom of a downtrend.
Structure

The hammer pattern is a single-candle bullish reversal pattern that can be spotted at the end of a downtrend. The opening price, close, and top are approximately at the same price, while there is a long wick that extends lower, twice as big as the short body.



Irrespective of the colour of the body, both examples in the photo above are hammers. Still, the left candle is considered to be stronger since the close occurs at the top of the candle, signaling strong momentum.
On the other hand, an inverted hammer is exactly what the name itself suggests i.e. a hammer turned upside down. A long shadow shoots higher, while the close, open, and low are all registered near the same level.



Similar to a hammer, the green version is more bullish given that there is a higher close. This pattern always occurs at the bottom of a downtrend, signaling an imminent trend change. Again, the wick should be twice as big as the body.



What the hammer formartions tell youAs noted earlier, both of these patterns are considered to be powerful reversal patterns.

Following a downtrend, where the price action created a series of the lower lows and lower highs, the bulls are increasing their presence in the game and are signaling that there might be a change in the price direction.
Thus, a hammer signals a potential change in the price direction, as the bears were unable to follow up on the new short-term low by allowing the bulls to push the price higher to force a higher close.
It is exactly the high close that signals that the bulls have just assumed control over the price action, as they defeated the bears in an important fight near the session lows.
Similarly, the inverted hammer also generates the same message, but in a different manner. The price action opened low, but pushed higher to surprise the bears. Still, the bears still have control and they push back the price action to close near the lows.
Unlike the hammer, the bulls in an inverted hammer were unable to secure a high close, but were defeated in the session’s closing stages. Still, the mere fact that the buyers were able to press the price higher shows that they are testing the bears’ resolve.
The fact that the hammer’s bulls managed to get a close at the top of the candle is the reason the hammer is considered stronger than the inverted hammer. This is a logical sequence as the hammer is considered to be one of the most powerful candlestick patterns of any type.
It is important to note that neither of these two patterns is a direct trading signal, but a tool which generates a sign that the price action may reverse as a balance shift is occurring.
To master the hammer and the inverted hammer, as well as other technical indicators and formations, you may want to consider opening a demo trading account, which you can access here. This way you will prepare yourself before you start risking your own capital.



How to trade the hammer candlestick pattern As stated earlier, a hammer is a bullish reversal pattern. It occurs at the end of a downtrend when the bears start losing their dominance. In the chart below, we see a GBP/USD daily chart where the price action moves lower up to the point where it prints a fresh short term low.


Although the session opens higher than the recent lows, the bears push the price action lower to secure new lows. However, the bulls surprise them with a press higher to secure the bullish (green) close. At this point, it is clear that the balance has changed in favour of the buyers, and there is a strong likelihood that the trend direction will change.
There are two options available:

1. Open the trade as soon as the hammer is formed and wait for the potential reversal to start
2. Wait for the second candle for confirmation. If it’s a bullish (green) candle, enter a trade to capitalize on the reversal.

As an example, we are opting for the first option, although it is a tad riskier. The green horizontal line signals our entry point - where the hammer closed. The red line is the low, against which we place a stop-loss around 10-20 pips beneath.
As a take-profit, you can determine the next resistance to which the bulls are likely to push the price action. In this case, we opted for the previous swing low, which is now the resistance.
Finally, the price action rotates higher in an explosive manner to bank us 300 pips, while we risked around 150 pips. A risk-reward 1:2 is considered to be a very good outcome.



How to trade the inverted hammer patternThe setup is almost the same as both of these patterns are bullish reversal formations. It is actually almost the same chart, it’s just that this sequence occurred a bit later.
Following a bullish reversal, the price action rotates lower again to briefly trade in a downtrend. At one point, the inverted hammer was created as the bulls failed to create a hammer, but still managed to press the price action higher.


As a result, the next candle exploded higher as the bulls felt that the bears were not so dominant anymore. Hence, the inverted hammer should be seen as a testing field in this case. As soon as the bulls felt the bears’ weakness they reacted quickly to drive the price action and secure a major victory.
Trading this formation is very similar to a hammer. A stop-loss should be placed below the most recent swing low. Again, you can either wait for the confirmation candle, or open the trade immediately after the inverted hammer is formed. The profit-taking order(s) should be placed at the previous support and dependent on your risk tolerance.
You can analyze the hammer and inverted hammer patterns, as well as other technical indicators, on the Metatrader 5 trading platform.



SummaryHammer and inverted hammer are both bullish reversal patterns that take place at the end of a downtrend. The bears, who have been a dominant force so far, are starting to lose their momentum.
As a result, both the hammer and the inverted hammer signal an impending reversal and a change in the trend direction.
It is important to always consult other technical indicators as these patterns are only gauging the market sentiment, and implying that a change in the trend direction may take place soon.
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment