CANDLESTICK PATTERN:
HAMMER
The hammer candles are Japanese candles in which the price is showing that, although it wants to, it cannot advance.
The hammer shaped candlestick pattern is made up of a short body with a long lower wick and is at the bottom of a downtrend.
A hammer shows that although there were selling pressures during the day, ultimately strong buying pressure caused the price to rise again. Body color can vary, but green hammers indicate a stronger bull market than red hammers.
Note that these candles can be considered a Japanese candlestick pattern in themselves (single candle pattern, obviously), as they have a great tendency to meet at the extremes. They are much more likely to be found at a turning point than in the middle of a trend.
HAMMER
The hammer candles are Japanese candles in which the price is showing that, although it wants to, it cannot advance.
The hammer shaped candlestick pattern is made up of a short body with a long lower wick and is at the bottom of a downtrend.
A hammer shows that although there were selling pressures during the day, ultimately strong buying pressure caused the price to rise again. Body color can vary, but green hammers indicate a stronger bull market than red hammers.
Note that these candles can be considered a Japanese candlestick pattern in themselves (single candle pattern, obviously), as they have a great tendency to meet at the extremes. They are much more likely to be found at a turning point than in the middle of a trend.