Perfect Hammer Pattern Indicators and Alerts

29 thg 11, 2024

# Perfect Hammer Pattern Indicators and Alerts

This indicator identifies a specific and precise hammer candlestick pattern formation that can signal potential trend reversals or continuation setups. Unlike traditional hammer pattern indicators, this script focuses on exact wick measurements to identify high-probability trade setups.

## Pattern Specifications

### Bullish Setup Requirements
- Two consecutive green (bullish) candles
- Both candles must have NO lower wick (perfect bottom)
- Both candles must have an upper wick (showing buying pressure)
- Previous candle must be red (bearish) for context
- Marked with a green 'H' below the pattern

### Bearish Setup Requirements
- Two consecutive red (bearish) candles
- Both candles must have NO upper wick (perfect top)
- Both candles must have a lower wick (showing selling pressure)
- Previous candle must be green (bullish) for context
- Marked with a red 'H' above the pattern

## Trading Logic
This pattern is particularly effective because it shows clear control by either buyers (bullish pattern) or sellers (bearish pattern):

- In the bullish pattern, the absence of lower wicks indicates strong buying pressure preventing prices from falling below the open, while the upper wicks show profit-taking at highs
- In the bearish pattern, the absence of upper wicks shows strong selling pressure capping any upward movement, while the lower wicks indicate some buying support below

## Alerts
The indicator includes two alert conditions:
1. Bullish Pattern Alert: Triggers when two perfect bullish hammers appear after a bearish candle
2. Bearish Pattern Alert: Triggers when two perfect bearish hammers appear after a bullish candle

## Usage Tips
- Best used on timeframes 15 minutes and above
- Consider using in conjunction with key support/resistance levels
- Volume confirmation can increase pattern reliability
- The pattern may signal either trend continuation or reversal - always consider the larger market context

## Notes
- This indicator focuses on precise hammer formations rather than approximate patterns
- The requirement for consecutive perfect hammers makes this a relatively rare but high-probability setup
- Visual markers ('H') provide easy pattern identification on charts

30 thg 11, 2024

Phát hành các Ghi chú

Little better signals and alerts

1 thg 12, 2024

Phát hành các Ghi chú

Key changes made:

• Added an input parameter consecutive patterns with a default value of 2
  
• Modified the alert messages to display the actual number of patterns found