Once this set up is complete many traders will place an order at the high of the bullish 3rd candle and a stop just below the low of the hammer candle
. Used alone this strategy is best for scalping 15-30 pips and then taking some profit and moving the stop up the same number of pips - ie 15 30 pips higher. The trade can then be managed individually. Used in conjunction with other indicators such as Pivot levels and moving averages it can pick particularly high probability trading opportunities.