#candlestick

The hammer pattern is one of the easiest candlestick patterns to recognize. Because it resembles a hammer, this pattern consists of a candle with a long lower wick while experiencing a downtrend. The body or the filled part is small with a little upper wick or no upper wick at all. The hammer pattern can be red or green.

The indication is that it can show a strong reversal trend and potential price surge. This pattern indicates high selling pressure, but at the same time, buying pressure regains control of the price action.