Hammer Candlestick
Traders in the financial markets often make use of candlesticks as a great visual aid to analyse and monitor what a particular price has done within a certain time period. Candlestick patterns are the most flexible technical indicators to understand the market movements. The patterns can help traders gauge market sentiment for a certain financial asset. For instance, a hammer candlestick is a bullish pattern formed when the price of an asset declines from its opening price, reaching close to the support level, only to bounce back to close at a high.
Talking of bullish candlesticks, a popular pattern is the hammer candlestick formation. A hammer is one of the more important reversal patterns that traders should be aware of. The hammer is treated as a bullish reversal, but only when it appears under certain conditions. The pattern normally forms near the bottom of downtrends, indicating that the market is attempting to define a bottom.
