Hammer / ハンマー・たくり線
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A single-candlestick pattern appearing at the bottom of a downtrend. It has a small body near the top, a lower shadow at least twice the body length, and virtually no upper shadow. It indicates that heavy selling was reversed by buying pressure, suggesting the end of the downtrend and a potential upward reversal.
After the hammer is confirmed, enter long when the next candle opens as a bullish candle. Entering when price exceeds the hammer's high is also valid.
Project the hammer's lower shadow length upward from the high to determine the price target. Or target the nearest resistance line.
Place a stop-loss slightly below the hammer's low (lower shadow tip).
Higher volume on the hammer increases reliability. Heavy volume indicates strong buying at the bottom.