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