Bullish Hammer Patterns

The hammer candlestick exhibits distinctive visual characteristics, resembling the shape of a hammer. It is characterized by a long lower shadow (at least twice the length of the real body), a short or nonexistent upper shadow, and a short real body.

Typically, when a hammer pattern emerges within a downtrend, it signals a potential reversal to the upside. This is because the hammer implies a shift in market dynamics. Amid a downtrend, sellers appear to dominate, but the presence of a hammer indicates a strengthening of buyer momentum.