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The Hammer Pattern Recognition in TradingView
Coding a Hammer Candlestick Pattern Scanner in TradingView
Candlestick patterns are a great addition to market analysis. Some may even consider them vital in research and trading. This article presents the Hammer pattern and shows how to code a scanner in TradingView that detects it.
For the complete collection of candlestick patterns in detail with back-tests and technical strategies, you can check out my newest book with O’Reilly Media. The book features a huge number of classic and modern candlestick patterns as it dwelves into the realm of technical analysis with different trading strategies. The book comes with its own GitHub and is dynamic in nature as it is continuously updated and questions are answered on the O’Reilly platform promptly.
The Hammer Pattern
Candlestick charts are among the most famous ways to analyze the time series visually. They contain more information than a simple line chart and have more visual interpretability than bar charts.
The Hammer pattern is a reversal candlestick configuration which is still ambiguous and has many names (like the hanging man and the shooting star). This article assumes one name and it is the hammer. It also assumes more intuition in that the long wick is the point of reversal.
The bullish Hammer is composed of a bullish candlestick that has a long low wick and its close equal to the high. The following Figure shows a theoretical illustration of a bullish hammer.
The bearish Hammer is composed of a bearish candlestick that has a long high wick and its close equal to the low. The following Figure shows a theoretical illustration of a bearish hammer.
