Understanding the 5 Minute Hammer Alert

This alert reports when there is a traditional hammer pattern on a standard candlestick chart. Because the closing price is so important to a hammer trading pattern, we only report these at the end of the timeframe. The different alerts work on charts of different timeframes.

The last candle in a hammer pattern has no upper wick, a small body, and a large lower wick. This candle must occur in a downtrend. We associate this alert with the color green because most traders see a hammer as a reversal pattern.

Default Settings

By default, 5 Minute Hammer alert appears when there is a traditional hammer pattern on a standard candlestick 5 minute chart.

Custom Settings

For '5 Minute Hammer' alerts, you have the option to use an alert specific filter. This filter is located immediately to the right of the corresponding alert and is always optional. You can decide to leave it blank if you want to receive more alerts, or you can fill it in to restrict the number of alerts you receive. This filter allows you to specify the quality of the alert. When you set a higher number for this filter, you are telling the alerts server to display only alerts that meet a higher quality standard, resulting in fewer alerts being shown.

When setting an alert for '5 Minute Hammer', the user can filter these alerts by a grade of how on how closely the stock chart matches the ideal shape of the stock pattern. 0 would mean there was no match. 100 would mean its an ideal match.

Description Column

The description of the alert will give a more comprehensive breakdown of the alert.

Quality Column

The quality value on a scan using the "5 Minute Hammer" represents the grade based on how closely the stock chart matches the ideal shape of the stock pattern. 0% would mean that there was no match at all. Of course, if a stock pattern is this poor a match, then we are unlikely to report an alert. 100% would be an ideal match. Again, this would be an ideal and extreme case. Few if any alerts come close to 100%.