Technical analysis
Hammer
A hammer is a candlestick with a small body and long lower wick, appearing after a decline and suggesting a bounce.
A hammer is a candlestick with a small body and long lower wick, appearing after a decline and suggesting a bounce.
The long lower wick shows sellers pushed price down, but buyers brought it back near the open: a sign selling pressure is fading. Like any pattern, it is confirmed by the next candle.
After a decline, a hammer forms and price rises the next day: the bounce confirms.
Understanding a term is good. Applying it on a real platform with a clear method is better. That is exactly what we do in 5 days.