Hammer Candle Reversal (Python)

Hammer candles often mark an intraday reversal after selling pressure subsides. This strategy looks for a hammer pattern and enters long, anticipating a rebound. The system requires a lower shadow at least twice the body and little upper shadow. Once identified, it buys with volume size and waits for profit or stop-loss.

• Entry Criteria: Hammer candle detected.

• Long/Short: Long only.

• Exit Criteria: Stop-loss or discretionary exit.

• Stops: Yes.

• Default Values:

• CandleType = TimeSpan.FromMinutes(5) [*]Filters:

• Category: Pattern

• Direction: Long

• Indicators: Candlestick

• Stops: Yes

• Complexity: Basic

• Timeframe: Intraday

• Seasonality: No

• Neural Networks: No

• Divergence: No

• Risk Level: Medium