Hammer Candlestick

Hammer is a reversal pattern when found in a downtrend.  The hammer is a bullish reversal pattern in candlestick chart. The Hammer is a strong reversal signal that a bearish trend is weakening.

Identification of Hammer Candlestick

The long lower shadow

The real body is at the upper end of the trading range.

Little or no upper shadow.

The long lower shadow signal that sellers pushed prices lower but the buyers were able to overcome this selling pressure.