A Hammer candlestick is a bullish reversal pattern

A Hammer candlestick is a bullish reversal pattern that usually appears after a downtrend or near a strong support zone. It has a small real body near the top with a long lower shadow, showing that sellers pushed the price down but buyers strongly recovered it. The long lower wick indicates rejection of lower prices and possible buying interest. A hammer becomes more reliable when it forms at important support, a trendline, or demand zone. Confirmation is stronger if the next candle moves above the hammer’s high with good volume. If price breaks below the hammer’s low, the bullish setup becomes weak or invalid. Thus, the hammer mainly signals possible selling exhaustion and a potential bullish reversal, rather than guaranteeing a reversal.