By: rapidtips On: May 17, 2019 In: Comments: 0


Hammer is one of the most powerful candlestick charting patterns. This hammer pattern is generally, indicates a reversal from the bearish trend. When a security trades at lower price than its opening, but it rallies within the period to close near opening price – hammer pattern occurs.
Hammer pattern can be identified easily, in this type the lower shadow is at least twice the size of the real body.