NIFTY BULLISH HAMMER PATTERN BREAKOUT LEARNING THE BULLISH HAMMER CANDLESTICK PATTERN:
PRACTICAL LEARNING ON NIFTY 02.07.2021 AT 10:45 HRS
The bullish hammer candlestick pattern is frequently observed in share market and, like many Japanese candlesticks, provides important insight into market momentum. In particular, the bullish hammer can help to REVERSAL OF DOWNTREND.
Beginners can learn from this and Traders can exploit the detection of a bullish hammer candle with a proper understanding of its foundations. what we learn From Theory we can see practical let us have little theory:
WHAT IS A BULLISH HAMMER?
A bullish hammer is a single candle found within a price chart indicating a bullish reversal. It differs from other candlestick patterns due to its single candle hinting at a turn during an established downtrend.
The hammer is interpreted by understanding a candles particular open, low high and close levels. To create a hammer, price must first significantly sell off to create a new low. However, after this decline, prices must significantly rally causing prices to have a small body and close near its opening price.
A hammer should look similar to a "T". This indicates the potential for a hammer candle. A hammer candlestick does not indicate a price reversal to the upside until it is confirmed.
Learn to Find Bullish Hammer pattern:
Candle with a short body and long wick (at least 2x the size of the body)
Occurs at the bottom of a downward trend
Confirmation from other indicators as mentioned below
What we learn from Pattern
Trend reversal to the upside (bullish reversal)
Price rejection at a certain ‘key level’
Value for Beginner/Traders
Indicates potential price reversals which could lead to entering a long position at the start of an upward swing – capitalize on the full upward movement
HAPPY TRADING/HAPPY LEARNING
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