Hammer
A price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies later in the day to close either above or close to its opening price. This pattern forms a hammer-shaped candlestick.
Investopedia Says:
A hammer occurs after a security has been declining, possibly suggesting the market is attempting to determine a bottom.
The signal does not mean bullish investors have taken full control of a security, it simply indicates that the bulls are strengthening. Related Terms:
Bar Chart
Bear
Bull
Bullish Belt Hold
Bullish Engulfing Pattern
Candlestick
Technical Analysis |