Bank Nifty – Hammer Pattern

Hammer is a bullish reversal pattern, which occurs at the bottom of a trend. This pattern appears after or during a downtrend. It is a single candlestick pattern. It resembles with Bullish Dragonfly Doji. The only difference is doji has same opening and closing, while Hammer has a small real body at the upper end. Colour of the hammer is not important. However it is considered as more potent, if its colour is in green. Lower shadow of Hammer should be twice as long as real body. There should be very little or no upper shadow. The above conditions are seen in the Bank Nifty chart.   The Hammer appeared.  Before that it was a bearish trend. After the hammer the trend revered to the bullish trend.