A hammer is good for day trading only when paired with confirmation, volume, and prior price action; on its own it is an inadequate signal. The hammer strategy is typically used on a day or 60-minute timeframe, and given the rarity of clean patterns, traders usually scan a large number of shares. These signals tend to be noisy, and the main difficulty in implementing hammer strategies comes from separating noisy signals from real ones
. Filter aggressively: trade hammers near support, with above-average volume, and only after the next candle closes above the hammer's high.