Hammer Candlestick Pattern
A Hammer Candlestick pattern occurs when a stock, commodity, or currency opens lower than its previous closing price but closes near or above that price. The candlestick resembles a hammer, with the main body showing the difference between the opening and closing prices. The wick (or shadow) represents the highest and lowest prices during the period. This pattern suggests a potential reversal, as the price decline is followed by strong buying pressure, pushing the price back up. Typically, it signals a bullish trend, indicating that sellers lost control and buyers may push the price higher in the future.
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