The document discusses hammer candlestick patterns, which are characterized by a long shadow and small body, indicating potential bullish reversals, especially after downtrends. It emphasizes the significance of market emotions and price actions in interpreting these patterns. Key points include the requirement of a long shadow relative to the body and the proximity of the opening and closing prices.

1. CANDLESTICK
PATTERNS
Episode 02
What Is Hammer Candlestick patterns?
PAGE 1

2. Course
Outline
PAGE 2
What is Hammer Candlesticks
Patterns?
Sign of Reversal Patterns
HAMMER CANDLESTICK TERMINOLOGY
AND MARKET EMOTION
We will cover these topics

3. Hammer Candles
PAGE 3

4. What Is Hammer Candlesticks
PAGE 4
1. A candlestick chart pattern is called a hammer if it has a long shadow and a
small body (black or white) that is very close to the high of the day. At the
end of a downtrend, the hammer is considered a bullish reversal signal.
2. the shadow should be about three times as long as the body.
3. The long shadow shows that the market price dropped very sharply after
the opening and then recovered at the end of the trading session.
4. The opening and closing price should be close together, which will result
in a small body on the candlestick chart.

5. HAMMER CANDLESTICK
TERMINOLOGY AND MARKET
EMOTION
 Hammer are the way to measure
the emotional component of the
market.
 Hammer is Bullish reversal
Patterns
 Buyers are in momentirily control
 The Longer the wick, the greater
the price rejection
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First Skill Second Skill
Third Skill
Conclusion
Market Emotion

6. First Lesson
Summary
Here is what we learned
 Hammer Candlesticks Patterns
 Hammer is bullish reversal patterns
 Hammer is indicator of price action either in uptrend or
downtrends
PAGE 6
First Skill Second Skill Third Skill
Conclusion