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.

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 ...