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Hammer

Hammer is a potentially bullish pattern which occurs during a downtrend. It is named because the market is hammering out a bottom.





Recognition Criteria:

•    The long lower shadow is about two to three times of the real body.
•    Little or no upper shadow.
•    The real body is at the upper end of the trading range.
•    The color of the real body is not important.

 

Notes and references

  1. http://www.swingtracker.com/content.php?content=candle_hammer

 

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