In a nutshell, this hammer candlestick pattern detector indicator will inform the trader via various messaging options after the candle has formed, please note that this indicator is to be used to identify long trades only on price reversals and it will not provide signals for short trades.
What Is The Hammer Candlestick Pattern?
The Hammer is a bullish reversal pattern that forms after a decline in price after a bear run. Hammers can also mark bottoms or support levels if you identify a hammer pattern while using the
cTrader Support & Resistance Tool you will have a higher probability of success.
The low of the long lower shadow denotes that the sellers have driven the prices down during the session and a strong strong finish will indicate that the buyer has regained control towards the end of the session. Alone this is not a strong enough indication to enter a trade, the hammer candle will require additional bullish confirmation, the trader will need to analyse the surrounding candles, the volume traded as well as confirm strong support & resistance levels.
How This Software Detects Price Reversal Patterns
As well as detecting 4 different types of hammer candlestick formations, it also has an input parameter that the trader can modify for the number of the previous bearish candlestick, the trade setup shown above has 3 bearish candles followed by a strong hammer candlestick.
Types of Hammer Candles Identified
There are 4 different types of hammer candlesticks that are identified using this software.
Strong Hammer
A strong hammer candle has a bullish body with a long shadow below.
Weak Hammer
A weak hammer candle has a bearish body with a long shadow below.
Strong Inverted Hammer
A strong inverted hammer candle has a bullish body with a long shadow above.
Weak Inverted Hammer
A weak inverted hammer candle has a bearish body with a long shadow above.
Example Trade Setup Using A Hammer
The image below shows a typical trade setup using the hammer candlestick.
Additional Integrated EMA Indicator
Integrated into this indicator is an exponential moving average which will help filter out false signals.
Learn How To Trade Using Hammer's
We do not just provide traders with an indicator to download we also provide educational material to learn how to trade using Hammer candlesticks.
Telegram Alerts
When a signal happens for a trend reversal, the indicator will send a Telegram alert directly to your PC or mobile device, this is much faster than email as it is a push notification.
POP-UP WINDOW MESSAGE
This indicator will also display the classic pop-up window when an alert occurs.
How To Use The Input Parameters
Your adjustable parameters are all explained in a PDF document which can be viewed below.
Watch a Video Demonstration
The video has been uploaded to 1080p High Quality, so do not forget to set your YouTube video quality to 1080p HD.
Duration: 15 minutes
How To Install & Remove
First, make sure you have the cTrader trading platform installed and then unzip the file and double-click on it to automatically install it onto the platform.
Any Questions?
If you have any questions or bugs, please first search our product help forum for the answer, if you cannot find it, post a new question.
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