Candlestick HammerA Candlestick Hammer is a reversal candlestick pattern with long lower shadow and no upper wick. They are bullish in nature.A hammer typically appear at the end of a down trend. They have a small real body at the upper end of the candle. The body may be black or white. They have a long lower wick which is double the height of the real body. The upper wick may be absent or very short. The market opens and continue their down trend. At the lower end of the trend the sell off ceases. The trend reverses and the demand increases, pushing the price higher to close near the opening or little above. Next day's price movement confirms whether the trend is reversed or continuing. A white bodied hammer candle is more bullish than a black bodied hammer.
Candlestick with similar features, when they appear at the end of an upper trend are called as Hanging Man candlesticks. which are bearish in nature. So the name changes depending on, whether they appear at the end of an up trend or a down trend. Click here to go from Candlestick Hammer to Candle chart Click here to go back to Home |
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