Bearish Hammer Pattern

Bearish Hammer Pattern

The Bearish Hammer Pattern is one of the most popular candlestick patterns that people look out for when putting in place a forex or binary options trading strategy. It signals the possibility of a reversal during the end of an uptrend, and is one of the more favourable patterns for traders to spot. The setup for a bearish hammer is to first spot when an uptrend is coming to an end, then be on the lookout for a big bullish candle, and finally for the actual signal candle there could potentially be a gap up with bulls seemingly in control until the bears have had enough and drive the price back down.

Some examples of the Bearish Hammer Patterns on various timescales on the Tradingview Chart Platform.

bearish hammer pattern

 

 

A good Bearish Hammer Pattern has been set, the Bulls had been controlling most of the price, the presence of wicks on the candles shows a struggle from the bears to get in to the market, finally the Bulls are exhausted and the Bears have taken control in to a nice downtrend.

 

 

 

 

 

bearish hammer pattern

 

 

Bearish Hammer Patterns don’t have to be red (or what ever colour you use for bearish candles), here is an example of a Bearish Hammer that still shows the presence of some Bulls however the Bears manage to overpower them in to the candle, and again in to a downtrend.

 

 

 

 

bearish hammer pattern

 

 

The Bulls had been in full control and as another example of a Bearish Hammer that still shows the presence of some Bulls however the Bears manage to overpower them.

 

 

 

 

bearish hammer pattern

 

 

 

Here is a great Bearish Hammer, the power from the Bulls is present from the large Bull candle showing the Bulls strength, then in come the Bears.

 

 

 

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