Hammer

Most Used Trends of Hammer Pattern

Advantages & Limitations of Hammer & Invert Hammer Pattern

Both Hammer& Hanging Man patterns are found very frequently but the success rate is not that high for any of those. Bullish Hammer acts as a reversal pattern in 60% of the cases with the performance improving with a white body and a lower shadow 2-3 times longer than the body. Interestingly, Hanging Man acts as a reversal pattern more frequently than as a reversal pattern, as it is supposed to be.

A trade is triggered when the top of a Bullish Hammer or the bottom of a Hanging Man is breached.