Hammer

What Does Hammer Mean?
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.

Hammer

Investopedia explains Hammer
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
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