A bullish Hammer candlestick is formed when the high and the close are the same and it is considered a stronger formation because the bulls were able to reject the bears completely plus the bulls were able to push the price even more before the opening price.
The long lower shadow of the Hammer indicates that the market tested to find where support and demand were located. When the market found the support area, the lows of the day, bulls began to push prices higher, near the opening price. Thus, the bearish advance downward was rejected by the bulls.
The long lower shadow of the Hammer indicates that the market tested to find where support and demand were located. When the market found the support area, the lows of the day, bulls began to push prices higher, near the opening price. Thus, the bearish advance downward was rejected by the bulls.