Price Action Lesson 2: Conditions of a Perfect Hammer

Conditions of a Perfect Hammer:
. Body height must be short.
. The total height of the candle must be taller than the Daily ATR-264. The taller the candle is, the stronger the Hammer is.
. The lower shadow’s length should be very tall. It is better to be over 75 percent of the Daily ATR-264.
. The upper shadow does not exist, or if it does, it is very small. It shouldn't be more than 25 percent of the Daily ATR-264.
. The hammer that has an ascending body is stronger than the one which has a descending body.

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Price Action Lesson 1: Hammer

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Price Action Lesson 3: Hammer, The first sign of the beginning Ascending wave

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Price Action Lesson 4: Weak hammer

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Price Action Lesson 5: Weak Hammer (Example)