Hammer

    By
    Andrey Orlov
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    253

    HammerThe hammer is a bullish reversal pattern that usually forms after a downtrend. It has a relatively long lower wick with respect to the body and a very small or no upper wick.

    The hammer indicates that the bottom of the trend has been reached and the price may start to rise again.

    Hammer chart pattern

    (1) Hammer indicating a reversal

    Further reading

    To learn more about Japanese candlestick patterns, visit:

    Japanese candlesticks — the only chart type you need