Hammer Candlestick

Hammer Candlestick

Hammer Candlestick

A hammer is a type of bullish reversal candlestick pattern, made up of just one candle, found in price charts of financial assets.

The candle looks like a hammer, as it has a long lower wick and a short body at the top of the candlestick with little or no upper wick. In addition, the candle itself can either be red or green depending on the strength of the reversal.

Specifically, it indicates that sellers entered the market, pushing the price down, but were later outnumbered by buyers who drove the asset price up.

The hammer candlestick is a bullish trading pattern that may indicate that a stock has reached its bottom, and is positioned for trend reversal. 

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