A hammer candlestick pattern is a single candlestick pattern that suggests a potential reversal of the overall bullish trend. A hammer is produced when a candle has a very short or no body and leaves a long, weak one on its lower side.
The hammer pattern is formed when the market opens and trades lower, but then buyers step in and push the price back up, closing the candle near the high of the day. This long lower wick represents the failed attempt by the sellers to push the price lower, and the subsequent close near the high indicates that the buyers have regained control. This pattern suggests a potential shift in market sentiment from bearish to bullish.
