Custom Hammer and Inverted Hammer Detection by Shadow-to-Body Ratio

Summary

This indicator lets a user set a multiplication factor to detect hammer and inverted hammer candlestick patterns. For a hammer, the example requires the shadow to be at least the selected multiple of the candle body; the inverted-hammer condition applies the relationship in the opposite orientation. The indicator plots the pattern using a color chosen through an input setting.

The example factor is 1.25, meaning the relevant shadow must be at least 1.25 times the body. This configurable threshold makes pattern detection adjustable instead of relying on a single fixed ratio. The description does not specify how it handles zero-sized bodies, whether the candle’s location in a trend matters, or how signals should be traded. It also supplies no performance tests or evidence that detected patterns predict reversals, so the pattern is a visual screening tool rather than a validated standalone strategy.

Key ideas

• The indicator detects hammer and inverted hammer candles using a configurable shadow-to-body multiple.
• The example uses a minimum shadow length of 1.25 times the body.
• The plotted color is user configurable.
• No trading rules or performance evidence are provided, and edge cases are not discussed.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.