⚡️Introduction
The hammer candlestick is a pattern that works well with various financial markets. It is one of the most popular candlestick patterns traders use to gauge the probability of outcomes when looking at price movement.
Combined with other trading methods such as fundamental analysis and other market analysis tools, the hammer candlestick pattern may provide insights into trading opportunities.
⚡️What is a hammer candlestick pattern?
A hammer candlestick is formed when a candle shows a small body along with a long lower wick. The wick (or shadow) should have at least twice the size of the candle body. The long lower shadow indicates that sellers pushed the price down before buyers pushed it back up above the open price.
Below you can see the opening price (1), the closing price (2), and the highs and lows that form the wick or shadow (3).
