It consists of a large bearish candlestick followed by a smaller bullish candlestick that is completely contained within the body of the previous larger candle. This formation suggests that selling ...

The hammer is a bullish reversal candlestick pattern characterized by a small body near the top, a long lower wick, and little to no upper shadow. It signals a shift from selling to buying pressure.

This design is evident in the accompanying candlestick anatomy image below. The “body” of the candlestick illustrates the opening and closing prices. The opening price is the first price at ...

Candlestick patterns are a critical tool in technical analysis, offering valuable insights into the psychology of the market and allowing traders to make better decisions.

In contrast, line charts show only the closing prices. A candlestick body represents the price difference between the open and close for that time period. If a candlestick is green (or white ...