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Hammer Candlestick

Technical Analysisintermediate
Updated 1/15/2024

Definition

A hammer is a bullish reversal candlestick with a small body at the top and a long lower shadow, resembling a hammer. It suggests selling pressure was absorbed and buyers stepped in.

Example

A hammer forming at EUR/USD support level 1.1000 after a downtrend suggests potential bullish reversal, especially if confirmed by next candle.

Tags

#technical-analysis#candlesticks#reversal
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