ContentsStar PatternsThe Take Profit LevelEngulfing PatternStep 2 Identify The Length Of ShadowsMarubozu Candlesticks Identifying hammer candlestick patterns can help traders determine potential price reversal areas. Hammer candlestick patterns occur after a security has fallen in price, typically over three trading days. A stop-loss can be put below the bottom of the hammer's shadow for individuals entering fresh long positions. Does the color of a hammer candlestick matter? The body color of a hammer is not as important as the shape and location. Body can be either black or white forming either a bullish or bearish candlestick. The most important...