A hammer is a price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies within the period to close near the opening price. This pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size of the real body. The body of the candlestick represents the difference between the open and closing prices, while the shadow shows the high and low prices for the period. In this video we explore this pattern and how you can trade it efficiently.
In today's video I wanted to talk about the Hammer CandleStick Pattern. One of the most popular price patterns that traders use to identify a bottom. A hammer occurs after a stock has been declining, suggesting the market is attempting to determine a bottom.