Hammer Candlestick Pattern (Secrets) - Bullish Pin Bar

The Hammer candlestick pattern or bullish pin bar is a bullish reversal candlestick pattern that looks like a real hammer because its lower shadow is longer and shorter body at the top of the candlestick, where the lower shadow is at least twice its actual body.

The hammer candlestick pattern, also known as the pin bar, that can convert a downtrend to an uptrend, but all Hammer candlestick patterns cannot convert a downtrend to an uptrend. Only a 100% perfect Hammer pattern can convert a downtrend into an uptrend. Today we will learn how to identify a 100% perfect hammer candlestick pattern, so let's get started.

This pattern forms a hammer-shaped candlestick in which the lower leg is at least twice the size of the the real body. The body of the hammer candlestick represents the difference between the opening price and the closing price of the security, while the leg represents the high and low prices during the period.

Hammers are most effective when they appear after three or more red candles. The hammer candlestick or bullish pin bar appears at the bottom of the downtrend and indicates a bullish reversal signal.

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