What is Hammer Candlestick ?
The hammer candlestick is a technical analysis tool used in markets to identify potential trend reversals. It is a bullish candlestick pattern that forms when the price of an asset moves significantly lower from its opening price, but then rallies to close near or above the opening price.
The hammer candlestick has a small body and a long lower shadow, which looks like a hammer. The body of the #candlestick represents the opening and closing prices, while the shadow represents the price range for the day. The long lower shadow indicates that the sellers drove the price down during the day, but buyers pushed the price up, creating a bullish reversal signal.
Does Bearish Hammer Candlestick is bullish?
It shows that the buyers could absorb the selling pressure but could not drive up the asset’s price past the opening price
Traders use the hammer candlestick to identify potential buying opportunities, as it suggests that the market may be reversing from a down to an uptrend.
