Hammer Indicator - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources

The Hammer indicator identifies key candlestick patterns on MetaTrader 5 charts, specifically the green and red hammers and the inverted hammer. It is designed to highlight potential price reversal points by analyzing the candlestick structure on each bar. Hammers typically have smaller real bodies and longer lower shadows, indicating potential buying pressure following a downtrend. In contrast, the Inverted Hammer has a long upper shadow, which may indicate a possible reversal following an uptrend.

The indicator uses three main customizable parameters to calculate the size and ratio of candlestick shadows and real bodies to detect these patterns:

Once the pattern is identified, the indicator will display an arrow on the chart in a specified color (green or red), which is placed near the highest or lowest price of the candlestick, depending on the direction of the pattern. Functions in the code handle the creation and positioning of these graphical objects, as well as cleaning the objects when the indicator is removed from the chart.

This indicator is suitable for traders looking to spot potential reversals, and its parameters can be customized for different time frames and market conditions. It is a versatile tool that can complement a variety of trading strategies by providing early visual cues to potential price changes.

Attachment download

📎 hammer.mq5 (8.5 KB)

Source: MQL5 #53154