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Hammer Blast

Trading signal: the Hammer Blast identifies a rebound

Bollinger volatility | Bullish break-out | Candlestick patterns (v.1) | Candlestick patterns (v.2) | Fake Trend Reversal | Gap close | Hammer blast | Heikin Ashi | Inside Bar Break-out | MACD Divergence | Market structure points | Range Break-out | TLB Bands (v.1) | TLB Bands (v.2) |

Description

The Hammer Blast pattern occurs at the end of a down-trend. It often reflects a change in the sentiment of the market. The pattern works well for market indices (DAX, DOW…) and individual stocks.

 
Category : Rebound
Components : Hammer candlestick pattern
Time frame(s) : All
Usable for buy signals : Yes
Usable for short sell signals : No
The Hammer candlestick pattern consists of four candles. The two first candles need to be bearish candles. The third candle needs to be a Hammer candle. The fourth candle must be a bullish candle. The open of the fourth candle must be above the close of the Hammer candle.

Trading tick movement
 

When to open a position?

As soon as the Hammer pattern is confirmed by the termination of the fourth candle a long position is bought at the market price. The Hammer pattern does not provide short sell signals.

SignalRadar tables in NanoTrader.

This example shows a Hammer pattern on the S&P 500 chart in a 60-minute time frame.