Definition
The Hammer Candlestick Pattern is a bullish reversal signal that typically forms during a downtrend. This pattern consists of a small body at the top and a long lower wick, resembling a hammer. It signifies that sellers were in control early in the session, pushing prices lower, but buyers later managed to bring prices back up, showing strength. There is little or no upper shadow in this pattern.
Signal
The Hammer pattern suggests a potential bullish reversal, indicating that selling pressure may be easing, and buyers are gaining control.
Trend
This pattern is most often seen near the end of a downtrend. It implies that a price reversal could be imminent.
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