 |
Definition of 'Hammer'
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.
|
 |
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.
|
-
When a candle pattern re-occurs near a moving average, it may indicate future support or resistance.
Read More »
-
Discover the components and basic patterns of this ancient technical analysis technique.
Read More »
-
Crowd psychology is the reason this technique works. Find out how to make it work for you.
Read More »
-
-
Take a look at continuation patterns and how they can confirm or deny trends.
Read More »
-
If you want to use candlestick charting to get a sense of where a stock is headed, you need to learn how to read this unique charting language.
Read More »
-
Read the case against this well-established indicator.
Read More »
-
Precise and short, the tweezer setup is similar to double tops and bottoms.
Read More »
|
|
