Negated Hammer

// ============================================================
// Negated Hammer
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: 1 hour
// ============================================================

// --- Settings ---
DEFPARAM CumulateOrders = false
DEFPARAM PreloadBars = 1000

// --- Parameters ---
positionSize = 1          // contracts per trade
fastPeriod = 5            // fast SMA length
midPeriod = 10            // middle SMA length
slowPeriod = 50           // slow SMA length
minBodyRatio = 0.5        // signal candle body must exceed this share of its range
longTrailPoints = 18      // trailing stop distance for longs (points)
shortTrailPoints = 24     // trailing stop distance for shorts (points)

// --- Indicators ---
fastMA = Average[fastPeriod](close)
midMA = Average[midPeriod](close)
slowMA = Average[slowPeriod](close)
trendUp = close > fastMA AND close > midMA AND close > slowMA
trendDown = close < fastMA AND close < midMA AND close < slowMA

bodyRatio = abs(open - close) / (high - low)

// Previous bar has its body in the top third (hammer), and this bar's body
// sits wholly below it: the hammer is negated.
prevHammer = MIN(open[1], close[1]) > high[1] - (high[1] - low[1]) / 3
hammerNegated = MAX(open, close) < MIN(open[1], close[1]) AND bodyRatio > minBodyRatio

// Previous bar has its body in the bottom third (inverted hammer), and this
// bar's body sits wholly above it.
prevInvertedHammer = MAX(open[1], close[1]) < low[1] + (high[1] - low[1]) / 3
invertedHammerNegated = MIN(open, close) > MAX(open[1], close[1]) AND bodyRatio > minBodyRatio