1 00:00:00,490 --> 00:00:07,810 So the first bullet reversal pattern that we are going to see is a hammer, so a hammer looks something 2 00:00:07,810 --> 00:00:10,020 like this, it looks like a hammer. 3 00:00:10,570 --> 00:00:23,080 So you can see here that hammer has a small body, a long, lower shadow and a very small or nonexistent 4 00:00:23,110 --> 00:00:23,910 aperture shadow. 5 00:00:25,110 --> 00:00:28,710 This is how a hammer looks like. 6 00:00:29,800 --> 00:00:32,260 To give you more information about the hammer. 7 00:00:33,860 --> 00:00:42,230 Let's understand through important things that are associated with Hammer, the hammer is a single candle 8 00:00:42,230 --> 00:00:42,700 pattern. 9 00:00:43,070 --> 00:00:50,030 So we will in coming, we do see that there are some patterns which involve two candles, three candles, 10 00:00:50,420 --> 00:00:52,580 some involved even five candles. 11 00:00:52,760 --> 00:01:00,530 But in this case, this is the simplest form of candlestick pattern that you can have to a single candle 12 00:01:00,530 --> 00:01:00,940 pattern. 13 00:01:01,250 --> 00:01:02,630 It has a small body. 14 00:01:02,870 --> 00:01:08,300 So as you can see, the body is so small as compared to the tail. 15 00:01:08,990 --> 00:01:16,410 So theoretically speaking, the body is at top one fourth of the disarranged. 16 00:01:17,000 --> 00:01:19,970 Suppose this is the full body which we consider as one. 17 00:01:20,450 --> 00:01:24,560 So this person is one foot, one foot, one foot and one foot. 18 00:01:24,920 --> 00:01:32,690 So body should be in the top one fourth of the length of the candle. 19 00:01:32,720 --> 00:01:36,380 So in this case, we have that here. 20 00:01:36,410 --> 00:01:39,250 We have very small or no upper shadow. 21 00:01:39,560 --> 00:01:41,690 So this is an upper shadow that we are talking about. 22 00:01:42,200 --> 00:01:44,480 There is hardly any shadow. 23 00:01:44,660 --> 00:01:46,660 Even if it is no shadow, then it's OK. 24 00:01:46,670 --> 00:01:48,650 But we have a very small shadow. 25 00:01:49,580 --> 00:01:57,110 Then the long shadow that we have, long, lower shadow that we have should be at least twice the height 26 00:01:57,110 --> 00:01:57,970 of the real body. 27 00:01:58,220 --> 00:01:59,020 This is the body. 28 00:01:59,510 --> 00:02:05,780 So if it closes in one fourth, then you will normally have this twice as the length of the body. 29 00:02:05,790 --> 00:02:13,520 So basically the lower shadow should be long enough as compared to the body here. 30 00:02:13,550 --> 00:02:17,340 The important thing is color of the body is not important. 31 00:02:17,360 --> 00:02:19,790 So even this body is of red color. 32 00:02:19,970 --> 00:02:23,180 Then also it will be considered as a hammer. 33 00:02:23,720 --> 00:02:25,210 That is what you have to understand. 34 00:02:26,240 --> 00:02:34,550 And very important point that you should understand while studying Hammer is that this hammer should 35 00:02:34,550 --> 00:02:36,350 come in a downtrend. 36 00:02:37,100 --> 00:02:43,920 So market is falling and in falling market, this candle should come. 37 00:02:43,940 --> 00:02:49,680 This is very important then only we will be talking about reversal. 38 00:02:50,030 --> 00:02:51,470 So when will the reversal happen? 39 00:02:51,860 --> 00:02:58,390 When there is a downturn hemorrhage getting formed and trend is reversed so that logic should suffice. 40 00:02:58,880 --> 00:03:05,510 We will now go to chart and see whether we can see some hammer in real time. 41 00:03:07,990 --> 00:03:12,340 This is a stock chart of s.E.C. 42 00:03:12,340 --> 00:03:19,720 Ltd. This is a daily chart, and do you spot any HEMER so you can see this? 43 00:03:21,830 --> 00:03:25,970 This red candle is nothing but a hammer that has got formed. 44 00:03:26,450 --> 00:03:29,990 The important thing is market is in downturn, market is in downturn. 45 00:03:30,620 --> 00:03:35,380 The hammer is formed and you can see that there is a change in trend. 46 00:03:35,750 --> 00:03:38,680 So if you can spot this, you can take benefit of this. 47 00:03:38,690 --> 00:03:42,620 And when market goes up, you can benefit from this. 48 00:03:43,160 --> 00:03:44,450 We'll see another example. 49 00:03:47,070 --> 00:03:52,530 Of Maruti Suzuki, can you again spot a hammer which has come in falling market? 50 00:03:53,650 --> 00:03:54,250 This one. 51 00:03:55,750 --> 00:04:04,090 So the green hammer that is been formed, it has come when market is falling, so in falling market, 52 00:04:04,090 --> 00:04:09,270 the hammer has come and this hammer has shifted the direction of the train. 53 00:04:09,490 --> 00:04:15,010 So the downturn has now become an uptrend in this case. 54 00:04:15,790 --> 00:04:25,060 So Hammer is a very common, very important and very logical kind of bullish reversal pattern that you 55 00:04:25,060 --> 00:04:25,570 will see. 56 00:04:26,050 --> 00:04:28,390 What exactly is logic behind the hammer? 57 00:04:29,560 --> 00:04:31,530 See, in this case? 58 00:04:31,540 --> 00:04:34,900 See, for example, bears are taking full control of the market. 59 00:04:34,900 --> 00:04:36,460 Bears are pushing prices down. 60 00:04:36,880 --> 00:04:39,480 So bears are in full control of the market. 61 00:04:40,150 --> 00:04:45,800 And when we talk about this can burst open the market and push the market down. 62 00:04:45,970 --> 00:04:50,050 So, again, bears were in control of the market in the initial phase. 63 00:04:50,590 --> 00:04:53,860 But what happened was to control and then. 64 00:04:54,980 --> 00:05:03,620 Stock market up and then close it higher so you can see here that there is a shift in momentum of the 65 00:05:03,620 --> 00:05:12,620 trend from bears to bulls when memories from the hammer marks an important turning point as far as trend 66 00:05:12,620 --> 00:05:16,010 of that particular stock is concerned. 67 00:05:17,600 --> 00:05:19,250 I hope you've understood this. 68 00:05:19,580 --> 00:05:22,570 You can spot many hammers. 69 00:05:23,540 --> 00:05:32,240 I request you to go and plot any chart and try to understand various hamos that you will and you will 70 00:05:32,240 --> 00:05:32,900 see a lot of them.