The hammer is a bullish reversal candlestick pattern characterized by a small body near the top, a long lower wick, and little to no upper shadow. It signals a shift from selling to buying pressure.

The trader monitors the position for any signs that the reversal is ending. These could include candlestick patterns—e.g., a hammer or inverted hammer, a bullish engulfing, or a morning star ...

Indicates market indecision and potential reversal, especially after ... Patterns like engulfing or hammer provide deeper context. Are candlestick charts good for beginners? Absolutely.

Hammer: A small body with a long ... warning of a potential reversal to a downtrend. Traders can interpret the candlestick pattern to know if the market is trending upwards, trending downwards ...

These patterns fall into two categories: reversal patterns ... Patterns like engulfing or hammer provide deeper context. No pattern is perfect. Candlestick charts offer probability-based signals ...