LEARN THIS TRADING PATTERN
THE HAMMER CANDLE STICK PATTERN
The hammer candlestick pattern is characterized by a relatively short body& a significantly longer lower wick. This pattern typically emerges at the bottom of a downward trend.
The formation of a hammer suggests that although there were instances of selling pressure throughout the trading day, a robust buying force emerged, driving the price upwards.While the color of the body can vary, green hammers typically indicate a stronger bullish market compared to red hammers.
In summary, the hammer candlestick pattern signifies a reversal potential when found at the bottom of a downtrend, indicating that buying pressure outweighed selling pressure. The color of the body, whether green or red, provides additional insight into the strength of the bullish market.