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LogoutIn candlestick charting, a hammer is a price pattern that happens when an asset trades much lower than its initial price, then rallies within the period to close around the starting price. This design creates a hammer-shaped candlestick with a bottom shadow that is at least twice as large as the true body. The difference between the open and closing prices is represented by the body of the candlestick, while the high and low prices for the time are represented by the shadow. The hammer candlestick indicates that sellers entered the market during the time, but that the selling was absorbed in the close, and that purchasers had driven the price back to around the start.
A hammer is a price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies within the period to close near opening price. This pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size of the real body. The body of the candlestick represents the difference between the open and closing prices, while the shadow shows the high and low prices for the period.
