Hammer Candlestick
A Hammer Candlestick is a type of candlestick pattern used in technical analysis to indicate potential reversals in price trends. It typically appears at the bottom of a downtrend and has a small body at the top with a long lower shadow. This shape suggests that buyers are starting to gain control after a period of selling.
The long lower shadow indicates that sellers pushed the price down significantly during the trading session, but buyers stepped in to push the price back up, closing near the opening price. This behavior can signal a possible bullish reversal, making it an important pattern for traders to watch.