Hammer and inverted Hammer
The "Hammer and Inverted Hammer" indicator is straightforward and effective. It automatically spots key candlestick patterns for you, making it easier to see potential market turns. You can also adjust a few settings to fit your trading style. Simple, yet quite handy for traders!
Alerts for Hammer Pattern: When the script identifies a Hammer pattern, it can trigger an alert. This is particularly useful if you're looking for potential bullish reversal signals and don't want to miss them.
Alerts for Inverted Hammer Pattern: Similarly, when an Inverted Hammer pattern is detected, the script can also trigger an alert. This is helpful for spotting potential bearish reversal signals.
SETTINGS EXPLAINED
Minimum Lower Tail Length (%): This setting allows you to define what percentage of the total candle size should be considered a significant lower tail. This is important for identifying the Hammer pattern.
Number of Consecutive Candles (for Lower Tails): This input lets you choose how many consecutive candles with significant lower tails must be present to identify a pattern.
Percentage of Candle Below Previous Low: This setting determines what percentage of the candle's range must extend below the lowest low of a specified number of previous candles. It's used to assess the significance of a Hammer pattern.
Number of Previous Candles for Lowest Low: This decides how many previous candles the script should look at to calculate the lowest low, which is then used in the Hammer pattern analysis.
Minimum Upper Tail Length (%): Similar to the lower tail setting, this defines the significant length of an upper tail, used for identifying the Inverted Hammer pattern.
Number of Consecutive Candles (for Upper Tails): This input is for setting how many consecutive candles with significant upper tails are required to confirm an Inverted Hammer pattern.
Percentage of Candle Above Previous High: This setting is used to determine how much of the candle's range must be above the highest high of a set number of previous candles, aiding in the identification of the Inverted Hammer pattern.
Number of Previous Candles for Highest High: It specifies the number of past candles to consider for calculating the highest high, which is important for the analysis of Inverted Hammer patterns.
These settings allow you to customize how the script identifies Hammer and Inverted Hammer patterns, making it adaptable to different trading strategies and market conditions.
Hammercandlestick
HammersPlots an arrow above a hammer candle or candle with big lower wick. Yellow signifies a candle with higher than average volume. Blue is a lower than average volume candle. Hammers/Lower Wick candles are best after a drop in price or near bottoms.
Pivot Point CandlesIndicator that highlights Hammer, Inverted Hammer, Engulfing, and Harami candlestick patterns. Great for those looking for a quick way to show the most popular reversal patterns on the charts.
Options will allow you to select to show Hammers, Engulfing or Harami patterns only. You choose the combinations that you want. Great tool to learn and training your eyes to the patterns.
You also have an option to select "Super" versions of the Engulfing and the Harami patterns, the Supers only shows if the pattern engulfs the body and the wick of the smaller candle in the pattern.
The indicator will show Bullish opportunities and Bearish opportunities on the chart for each of the patterns. The inverted hammer will show at the top indicating a Bear move, and the Hammer will show below price indicating a Bullish move.
Use this indicator in conjunction with other Support & Resistance such as the simple moving averages, trend lines, flat lines, or even Bollinger bands. When these patterns show at or around these points on the chart they will indicate a reversal is pending. Wait for the next candle as confirmation that the move will actually take place in the direction indicated and you will have your pivot point on the chart and create a higher probability of success. Leverage Stochastic, RSI, or CCI indicators to help confirm the reversal as well. Look out for resistance above or support below to determine your targets for the reversal.
Happy trading!
