There are several posts on AuthenticFX relating to the hammer candle, and I cover the technical aspects of it in a post called The Rejection Bar Candlestick.
This indicator signals whenever a hammer candlestick occurs, depending on what you specify as a hammer candle. It can also be configured to send alerts when hammer candles occur. You can set to be alerted when any hammer occurs, or only bullish or bearish hammer candles occur. Alerts can be set as pop-ups, as well as sent to SMS or email.
The parameters for the indicator are as follows:
hammer_body_max_percent: the maximum size of the PinBar body expressed as a percentage
hammer_body_min_percent: the minimum size of the PinBar body expressed as a percentage
hammer_alert_dir: choose whether to set alerts for hammer candles that are bullish, bearish or both
emails_on: choose whether to be notified by email when a hammer candle occurs. If you have SMS configured, you will get notification via SMS as well.
This is what it looks like plotted on a Metatrader chart, showing at the bottom of the screen. The blue diamonds are for bullish hammers and the red for bearish hammers:
And here is a short trade I took on the Euro shortly after the London session had opened. The bearish hammer is circled in white and the entry and exit are indicated, along with the red dotted line that Metatrader uses when it plots a trade on the chart. I entered half a Pip below the bearish hammer and was taken out for 2 to 1 profit shortly after.
Enjoy The AFX Hammer Indicator!