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Japanese stock market · candlestick pattern

Hammer on Nikkei 225

On Nikkei 225 the hammer showed up 25 times. The target came first 52% of the time, the stop 48%, and 0% went nowhere within 12 candles.

Counted on Nikkei 225: daily candles from January 2015 and hourly candles from September 2024.

By timeframe

TimeframeFoundTarget firstStop firstWent nowhere
Daily1060%40%0%
Hourly1547%53%0%

Nikkei 225 against the rest

ChartsFoundTarget firstStop firstWent nowhere
Nikkei 2252552%48%0%
All Japanese stock market charts8243%52%5%
Every market11,79231%58%10%

The last 8 times

Counted by the Trading Class research engine on real past candles: entry at the signal candle's close, target 1.5 × ATR(14), stop 1 × ATR(14), 12 candles to decide, a candle that touches both counts as the stop. How we count. Past data, not a forecast and not advice.

What the hammer is

After a fall, a long lower wick shows buyers stepped in.

Drop a ball on the floor and it bounces back up. A hammer candle is like that: price fell a lot during the candle, then buyers bounced it back up near where it started. The long tail below shows how far it dropped before the bounce.

The full hammer lesson, video and quiz ›

Other patterns on Nikkei 225

Inside bar · Gap up · Stochastic bearish cross · Gap down · Stochastic bullish cross · Spinning top · MACD bearish cross · EMA 9/21 bullish cross · EMA 9/21 bearish cross · RSI overbought drop · all of them

The hammer elsewhere

Sony · Nifty 50 · Dow Jones · S&P 500 · GBP/USD · EUR/JPY · Ethereum · Bitcoin

Questions

How often does the hammer work on Nikkei 225?

In 25 cases on Nikkei 225, the target (1.5 × ATR) came before the stop (1 × ATR) 52% of the time and the stop came first 48%; 0% went nowhere within 12 candles.

What is the hammer?

After a fall, a long lower wick shows buyers stepped in.