Hammer

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    The 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.

     

    (1) Hammer indicating a reversal

    Further reading

    To learn more about Japanese candlestick patterns, visit: