A hammer candlestick formation appears when financial assets, for example, stocks, trade notably below their opening price but surge to close near it by the time the trading period ends. Analysts view it as a potential bullish trend reversal indicator, mainly appearing at the end of a downtrend. Hammer candlesticks are a bullish chart pattern. Learn their meaning, trading strategy, examples, risk management, and related patterns. A Hammer Candlestick is a pattern used in technical analysis to find a bullish reversal, It signals that buyers are starting to gain strength and push prices higher. Discover how to trade using Hammer Candlestick Patterns. Learn about bullish, bearish, inverted, and double hammer patterns, and their importance in trading
