Hammer Candlestick Pattern

Definition

: The Hammer Candlestick Pattern appears during a downtrend and features asmall body at the top with a long lower shadow and little or no upper shadow, resembling ahammer. It suggests that although selling pressure was present, buyers managed to drivethe prices back up.

Signal

: Indicates a potential bullish reversal.

Trend

: Typically signals the end of a downtrend