The hammer is a bullish candle formation that forms at the bottom of a downtrend. It begins with strong selling at the open but ends up closing near the open. It suggests price action may rise in the near future.
NOTE:
This is only a valid formation when at a key level of support. The longer the wick to the downside the stronger the reversal signal. The candle has to close above the open being a bullish candle.
TRIGGER:
Buy on the open of the next candle after the close of the hammer.
After the close of the hammer wait for the open of the next candle to Buy a retrace of the hammer.