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Hammer Strategy

 

Expert opinion: with the Hammer candlestick pattern, the colour of the body of the candle isn't important. Rather, what matters is that the body is as small as possible. The smaller it is, the stronger the pattern.les11_1_1.png

Expert opinion: to increase your chance of success, try not to open trades in the same direction as the candle's shadow. If the candle has a large upper shadow, you should refrain from opening long positions. Similarly, if its upper shadow is small, you should avoid short positions.les11_2.png

Expert opinion: with the Hammer candlestick pattern, you also want the shadow to be as long as possible. The longer the shadow, the stronger the pattern. In such a scenario, you can set your stop loss order just below the level represented by the candle's shadow.