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Hammer Candlestick Pattern

The hammer candlestick pattern features a small body and a long lower wick, typically appearing at the support line after a price decline. It signals a potential price reversal to the upside, requiring confirmation through subsequent upward movement. This pattern is indicative of bullish sentiment following a downward trend.

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2K views1 page

Hammer Candlestick Pattern

The hammer candlestick pattern features a small body and a long lower wick, typically appearing at the support line after a price decline. It signals a potential price reversal to the upside, requiring confirmation through subsequent upward movement. This pattern is indicative of bullish sentiment following a downward trend.

Uploaded by

socelduc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

(Hammer candlestick pattern consists of a

small body and a long wick extending from


the bottom.

(This pattern can be seen at the support line


of a downward trend (see example below).
Hammer candlesticks typically occur after a
price decline.

(Hammer candlesticks indicate a potential


price reversal to the upside. The price must
start moving up following the hammer; this
is called confirmation.

| u Little to no
<——_ upper wick
Long lower
wick ——S

Hammer
candle-stick
bouncing off
support

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