Hammer

Signal Type: Reversal
Bias: bullish

hammer

Description: A hammer resembles a hanging man but occurs at the bottom of a downtrend and signals a possible reversal to the upside. More reliable hammers  have a long lower wick, small body (red or green though green is considered a bit more reliable), and a small to non-existent upper body. Even more reliable hammers have a lower wick that extends far below other price action (sets a new low) and/or touches a support zone.

5 Comments on "Hammer"
  1. Reply
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    Comment left on:
    June 18, 2010 at 14:17
    mmk says:

    hi kindly wil u explain what does red and green arow defines and shows….
    and i want to know that in some levels it has been used that the red or green is considered a bit more reliable etc… i did not understand that as i have not seen any red indication in candlesticks…till now.

    • Avatar of piphut
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      Comment left on:
      June 18, 2010 at 14:59
      piphut says:

      Generally red just means bearish, green means bullish

  2. Reply
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    Comment left on:
    June 18, 2010 at 15:14
    mmk says:

    thanks mark i m new to forex and my friend reading ur site its jst awsome i dont have words for the level of guidance u have… thanks a lot.
    my friend is ther any problem in the forex signal glosaary? as it does not take me to the page of glosary!

    • Avatar of piphut
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      Comment left on:
      June 18, 2010 at 15:39
      piphut says:

      The glossary has been replaced by the Help page. Type anything into the help search box and it will bring it up if we have an article

  3. Reply
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    Comment left on:
    June 18, 2010 at 15:49
    mmk says:

    uhh.. i was having exams and at that time i got ur site i read that glosary i thnk that was much helpful.. but at that time i jst read it as lack of time and i wanted to read that again thats why little bit confused in some words… whatever u know beter that what is the best way to guide so it may be much better…thanks again..great. :)

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