In this article, we will talk about how the Red Hammer Candlestick works, when it is useful in which time frame you should do it so that it gives more positive results.

We have researched 100 K charts to see if it works in real time.

Does it work or not? Is the momentum after it good or not or does it fail and what is its accuracy?

What is a Red Hammer Candlestick

First, When the market goes downwards, all the bars become active due to which the price gets posted higher but it does not break its opening price action due to which a hammer is formed which gives a bullish signal.

And all this happens in a particular time frame, each one is different.

Difference between Red Hammer Candlestick and Green Hammer Candlestick

Let us now talk about the different red hammer candlestick and green hammer candlestick.

Red Hammer Candlestick: – Bullish Signal

Green Hammer Candlestick: – Bearish Signal

How to trade Red Hammer Candlestick in the Right Ways

Trade with Strong Support Level: –

After researching a 100k chart of what the Red Hummer can receive, we found that this candlestick works best with support levels whose probability of win ratio can go from 78 to 80%.

Trade with Moving Average: –

Another one of the best places to trade is the red hammer candlestick. Then trade with the moving averages.

When the price moves in the opposite direction from the moving averages, if a red hammer is formed after that then one of the best objects is to trade with the moving averages.

Trade with RSI: –

After this, if we talk about the RSI best indicator we have got, it is very old and is considered one of the best indicators. When we combine RSI in our research it works very well, so try to trade with that.

(Recommendation* Use only one strategy, if you think to trade with every strategy it’s not going to work

Because every strategy has a unique accuracy and strength.)

Which timeframe works better for the red hammer candlestick

History has proven itself that the longer the time frame the better the candlestick and the chart pattern work.

The best time frame in which the red hammer candidate works is the Daily time frame or weekly time frame.

So, you will also have to try with the big timeframe.

Conclusion

After doing our research and analysis, we have brought this result in front of you and you can freely use the strategies given by us because we use it ourselves and we have done research on it ourselves.

The study that we have mentioned, research about trading Red Hammer candlesticks, and the results that we are bringing in front of you after talking to a lot of research.

But remember, apart from study, many other things are useful in trading, so to learn all that, stay connected with us and we will go to learn from you. After doing the research, our team will keep giving you good results.

FAQs

Is red Hammer candle bullish?

Yes, red Hammer candle is a strong bullish signal because it is formed after a downtrend.

What does a red hammer mean?

First, the market gets posted downwards, after that, all the bars become active due to which the price gets posted higher but it does not break its opening price due to which a hummer is formed which gives a bullish signal.

Is a hammer bullish or bearish?

Bullish, when a hammer candlestick forms it gives a strong bullish signal.

What is the success rate of hammer candlesticks?

When a genuine Hummer is made, its probability can be up to 78%.