Vladimir RibakovOwner, Chief Trader at Home Trader Club (Former Traders Academy Club), Owner, Chief Trader at Home Trader Club (Former Traders Academy Club) · Owner, Chief Trader at Home Trader Club (Former Traders Academy Club)

Three things you must know about hammer candle pattern #trading #forextrading #forexeducation

25 Jul 2023 · 1 min

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0:57

Vladimir Ribakov explains three rules for trading Hammer and Hanging Man patterns. The candle body should be no more than 50% of the high-low range, ideally 30%. A Hammer at the end of a downtrend signals upward reversal; a Hanging Man at the end of an uptrend signals downward reversal. Always confirm with a verification candle showing higher highs and lows.

Chapters

Here are 3 things you must know about the Hammer and the Hanging Man candle pattern. The first thing is that the body of the candle cannot be more than 50% of the distance between the high and the low. In best cases, it should be around 30%. The second thing you should know that a Hammer will appear at the end of a down move, representing a potential reversal upside. Hanging Man will appear at the end of an uptrend, representing a potential reversal down. And the third thing is that a verification candle would give you always better chances. After a hammer, making higher highs, higher lows would give you better chance for a rally.