There are 4-types in total:
- Hammer (Bullish)
- Inverted Hammer (Bullish)
- Hanging Man (Bearish)
- Shooting Star (Bearish)
You should always use candlesticks in combination with other indicators such as oscillators, moving averages, Bollinger bands.
Added user control to define the maximum height of the tail to be 1/2 that of the body.
Tail / Body / Shadow
1) Tail no taller than 1/2 the body height.
2) Body no taller than 300 pips.
3) Body must be shorter than 1/3 of the shadow.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
Shadow / Body / Tail
It’s written opposite in the code, but that’s just a naming problem.
1) Shadow no taller than 1/2 of the Body
2) Body no taller than 300 pips
3) Body must be shorter than 1/3 of the Tail
1/2, 300 and 1/3 are all user modifiable values.