So the first bullet reversal pattern that we are going to see is a hammer, so a hammer looks something
like this, it looks like a hammer.
So you can see here that hammer has a small body, a long, lower shadow and a very small or nonexistent
aperture shadow.
This is how a hammer looks like.
To give you more information about the hammer.
Let's understand through important things that are associated with Hammer, the hammer is a single candle
pattern.
So we will in coming, we do see that there are some patterns which involve two candles, three candles,
some involved even five candles.
But in this case, this is the simplest form of candlestick pattern that you can have to a single candle
pattern.
It has a small body.
So as you can see, the body is so small as compared to the tail.
So theoretically speaking, the body is at top one fourth of the disarranged.
Suppose this is the full body which we consider as one.
So this person is one foot, one foot, one foot and one foot.
So body should be in the top one fourth of the length of the candle.
So in this case, we have that here.
We have very small or no upper shadow.
So this is an upper shadow that we are talking about.
There is hardly any shadow.
Even if it is no shadow, then it's OK.
But we have a very small shadow.
Then the long shadow that we have, long, lower shadow that we have should be at least twice the height
of the real body.
This is the body.
So if it closes in one fourth, then you will normally have this twice as the length of the body.
So basically the lower shadow should be long enough as compared to the body here.
The important thing is color of the body is not important.
So even this body is of red color.
Then also it will be considered as a hammer.
That is what you have to understand.
And very important point that you should understand while studying Hammer is that this hammer should
come in a downtrend.
So market is falling and in falling market, this candle should come.
This is very important then only we will be talking about reversal.
So when will the reversal happen?
When there is a downturn hemorrhage getting formed and trend is reversed so that logic should suffice.
We will now go to chart and see whether we can see some hammer in real time.
This is a stock chart of s.E.C.
Ltd. This is a daily chart, and do you spot any HEMER so you can see this?
This red candle is nothing but a hammer that has got formed.
The important thing is market is in downturn, market is in downturn.
The hammer is formed and you can see that there is a change in trend.
So if you can spot this, you can take benefit of this.
And when market goes up, you can benefit from this.
We'll see another example.
Of Maruti Suzuki, can you again spot a hammer which has come in falling market?
This one.
So the green hammer that is been formed, it has come when market is falling, so in falling market,
the hammer has come and this hammer has shifted the direction of the train.
So the downturn has now become an uptrend in this case.
So Hammer is a very common, very important and very logical kind of bullish reversal pattern that you
will see.
What exactly is logic behind the hammer?
See, in this case?
See, for example, bears are taking full control of the market.
Bears are pushing prices down.
So bears are in full control of the market.
And when we talk about this can burst open the market and push the market down.
So, again, bears were in control of the market in the initial phase.
But what happened was to control and then.
Stock market up and then close it higher so you can see here that there is a shift in momentum of the
trend from bears to bulls when memories from the hammer marks an important turning point as far as trend
of that particular stock is concerned.
I hope you've understood this.
You can spot many hammers.
I request you to go and plot any chart and try to understand various hamos that you will and you will
see a lot of them.