Hammer Pattern
A hammer Candlestick is a technical trading pattern that resembles a “T” whereby the price trend of a security will fall below its opening price, illustrating a long lower shadow, and then consequently reverse and close near its opening.
Hammer candlestick patterns occur after a security has fallen in price, typically over three trading days. They are often considered signals for a reversal pattern.
The hammer candlestick is a bullish trading pattern that may indicate that a stock has reached its bottom, and is positioned for trend reversal.