//@version=5
strategy("Hammer Candle Strategy", overlay=true, initial_capital=10000, default_qty_type=strategy.percent_of_equity, default_qty_value=100)

// Inputs for customization
hammertBodyRatio = input.float(0.3, title="Max Body Size Ratio", minval=0.1, maxval=0.5, step=0.1)
hammerWickRatio = input.float(2.0, title="Min Wick to Body Ratio", minval=1.0, maxval=5.0, step=0.1)

// Function to determine if a candle is bullish or bearish
is_candle_bullish(index) =>
    close[index] > open[index]

is_candle_bearish(index) =>
    close[index] < open[index]

// Hammer Candle Detection Function
//isHammer() =>
string dbg = ""
bodySize = math.abs(close - open)
totalRange = high - low

// Calculate upper and lower wicks
upperWick = high - math.max(close, open)
lowerWick = math.min(close, open) - low

// Check if body is small (less than 30% of total candle range)
isSmallBody = bodySize <= (totalRange * hammertBodyRatio)
//plotchar(isSmallBody, title="lw", char='-', location=location.abovebar,  color=#40fbf5,  size=size.small)

// Lower/Upper wick should be at least 2x the body size and significantly long
bool isLongUpperWick = upperWick >= (totalRange * 0.5) and upperWick >= (bodySize * hammerWickRatio)     
bool isLongLowerWick = lowerWick >= (totalRange * 0.5) and lowerWick >= (bodySize * hammerWickRatio)     
//plotchar(isLongUpperWick, title="LW", char='L', location=location.abovebar,  color=color.fuchsia,  size=size.small)
//plotchar(isLongLowerWick, title="lw", char='l', location=location.belowbar,  color=color.fuchsia,  size=size.small)

// Minimal lower/upper wick
bool isShortUpperWick = upperWick <= (bodySize * 0.5) or upperWick <= (totalRange * 0.2)
bool isShortLowerWick = lowerWick <= (bodySize * 0.5) or lowerWick <= (totalRange * 0.2)
//plotchar(isShortUpperWick, title="Bullish Candle", char='S', location=location.abovebar,  color=color.fuchsia,  size=size.small)
//plotchar(isShortLowerWick, title="Bullish Candle", char='s', location=location.belowbar,  color=color.fuchsia,  size=size.small)

// Bullish Hammer (Green/White)
isBullishHammer = isSmallBody and isShortUpperWick and isLongLowerWick //and is_candle_bearish(1) and is_candle_bearish(2) // and close > open 

// Bearish Hammer (Red/Black)
isBearishHammer = isSmallBody and isLongUpperWick and isShortLowerWick // and is_candle_bullish(1) and is_candle_bullish(2) // and close < open 
if (isBearishHammer)
    dbg := "TEST: " + str.tostring(isShortUpperWick) + " | "+ str.tostring(upperWick) + " | "+ str.tostring(bodySize) + " | "+ str.tostring(totalRange) + " | "
   
//    [isBullishHammer, isBearishHammer, dbg]

//[bullish, bearish, deb] = isHammer()
bullish = isBullishHammer
bearish = isBearishHammer
// Plot a '*' when close is above open (bullish candle)
plotchar(bullish, title="Bullish Candle", char='*', location=location.belowbar,  color=color.green,  size=size.small)

// Plot an '*' when close is below open (bearish candle)
plotchar(bearish, title="Bearish Candle", char='*', location=location.abovebar, color=color.red, size=size.small)

bullish := isBullishHammer and is_candle_bullish(1) and is_candle_bullish(2)
bearish := isBearishHammer and is_candle_bullish(1) and is_candle_bullish(2)

// Plot hammer candle markers
plotshape(bullish, 
          title="Bullish Hammer", 
          location=location.belowbar, 
          style=shape.triangleup, 
          size=size.small, 
          color=color.green)

plotshape(bearish, 
          title="Bearish Hammer", 
          location=location.abovebar, 
          style=shape.triangledown, 
          size=size.small, 
          color=color.red)

// Trading logic
if (bullish)
    strategy.entry("Long", strategy.long)

if (bearish)
    strategy.entry("Short", strategy.short)