Have you ever handled a hammer?
If not then this is a simple tool used by the carpenters to put nails into the wooden surface. Anyway, the relationship with the Candlestick Pattern which is also known as "Hammer" is their appearance. As for those who are completely clueless of how does a hammer looks like then I suggest searching for its images on Google Search Engine.
This type of Candlestick Pattern can only be found on a downtrend condition of the market. Hammer can be easily identified by it's small sized body with a long wick or shadow which is twice or longer than its real body. As for the color, it can either be bullish or bearish.
Take note that when you are able to encounter this type of candlestick especially on a downtrend situation, it is advisable not to make any rush decision since it requires more additional candles for confirmation. What we need is a "Close above the Close". This means that we need an additional two succeeding candles and they must close above each other closing prices.
You might experience in some certain situation that the trend reverses at an early stage without patiently waiting for the two confirmation candles. There is an explanation about such occurrences where you need to zoom at a closer time-frame. If you have already acquired some knowledge and experience then you will most likely be able to determine the exact period to setup your orders.
Trading alone simply with the use of a candlestick can be very plain and simple but it's too complicated especially for the beginners. To provide more probability on guiding your decisions, it is suggested that you make use of other tools as your secondary method for confirmation.
If not then this is a simple tool used by the carpenters to put nails into the wooden surface. Anyway, the relationship with the Candlestick Pattern which is also known as "Hammer" is their appearance. As for those who are completely clueless of how does a hammer looks like then I suggest searching for its images on Google Search Engine.
This type of Candlestick Pattern can only be found on a downtrend condition of the market. Hammer can be easily identified by it's small sized body with a long wick or shadow which is twice or longer than its real body. As for the color, it can either be bullish or bearish.
Take note that when you are able to encounter this type of candlestick especially on a downtrend situation, it is advisable not to make any rush decision since it requires more additional candles for confirmation. What we need is a "Close above the Close". This means that we need an additional two succeeding candles and they must close above each other closing prices.
You might experience in some certain situation that the trend reverses at an early stage without patiently waiting for the two confirmation candles. There is an explanation about such occurrences where you need to zoom at a closer time-frame. If you have already acquired some knowledge and experience then you will most likely be able to determine the exact period to setup your orders.
Trading alone simply with the use of a candlestick can be very plain and simple but it's too complicated especially for the beginners. To provide more probability on guiding your decisions, it is suggested that you make use of other tools as your secondary method for confirmation.
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